As the the remaining lease term of a St Leonard Shoreditch domestic lease lessens so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in St Leonard Shoreditch will meet the qualifying criteria; however a lawyer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in St Leonard Shoreditch with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in St Leonard Shoreditch,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Leonard Shoreditch valuers.
Max owned a studio apartment in St Leonard Shoreditch on the market with a lease of a little over 72 years left. Max on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Max to invoke his statutory right. Max obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last month we were phoned by Mr and Mrs. E Parker , who bought a first floor apartment in St Leonard Shoreditch in July 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparable premises in St Leonard Shoreditch with 100 year plus lease were valued around £218,000. The average ground rent payable was £45 collected annually. The lease came to a finish on 27 September 2089. Having 63 years left we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 plus legals.
An example of a Lease Extension case 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 lease term was 72.39 years.