Redbridge residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold residencies in Redbridge with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Redbridge can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Redbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
William was the the leasehold proprietor of a studio apartment in Redbridge on the market with a lease of just over 59 years left. William informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were William to invoke his statutory right. William procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were approached by Mr and Mrs. J Ali who, having acquired a purpose-built flat in Redbridge in January 1997. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar homes in Redbridge with an extended lease were in the region of £227,800. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2090. Taking into account 65 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Redbridge residence is 59 & 59a Clarendon Gardens in February 2014. The Tribunals valuation for the freehold was £30,073.00 The unexpired term as at the valuation date was 65 and 61.