When it comes to long leasehold property in St Leonard Shoreditch, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years left. Residents in St Leonard Shoreditch with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has below 80 years left, under the relevant Act the landlord can calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in St Leonard Shoreditch with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancing solicitors that we work with procure St Leonard Shoreditch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Adam was the the leasehold owner of a conversion apartment in St Leonard Shoreditch being sold with a lease of a few days over 72 years remaining. Adam on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
Mr P Nguyen owned a purpose-built apartment in St Leonard Shoreditch in June 1995. We are asked if we could approximate the price would be to extend the lease by an additional years. Identical premises in St Leonard Shoreditch with 100 year plus lease were in the region of £208,200. The average amount of ground rent was £65 collected per annum. The lease lapsed in 2086. Taking into account 61 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus legals.
An example of a Lease Extension matter before the tribunal for a St Leonard Shoreditch flat is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case affected 2 flats. The unexpired term was 72.39 years.