With a long leasehold premises in St Leonard Shoreditch, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Leasehold owners in St Leonard Shoreditch with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under 80 years remaining, under the current legislation the freeholder is entitled to calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in St Leonard Shoreditch with in excess of one hundred years unexpired 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in St Leonard Shoreditch can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
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 dealing with St Leonard Shoreditch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aiden owned a conversion apartment in St Leonard Shoreditch being sold with a lease of fraction over fifty eight years unexpired. Aiden informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Aiden to invoke his statutory right. Aiden procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Mr and Mrs. A Campbell owned a garden apartment in St Leonard Shoreditch in January 2003. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative flats in St Leonard Shoreditch with a long lease were worth £191,000. The average amount of ground rent was £65 collected annually. The lease terminated on 13 January 2084. Taking into account 58 years left we estimated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including fees.
An example of a Lease Extension matter before the tribunal for a St Leonard Shoreditch property 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 was in relation to 2 flats. The unexpired lease term was 72.39 years.