When it comes to long leasehold premises in St Leonard Shoreditch, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years left. Anyone in St Leonard Shoreditch with a lease approaching 81 years remaining should seriously consider extending it sooner than later. When the lease term has under eighty years remaining, under the relevant legislation the landlord is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a landlord 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.
Dylan owned a studio flat in St Leonard Shoreditch on the market with a lease of a little over 59 years remaining. Dylan informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last Summer we were called by Ms Poppy Moreau , who purchased a one bedroom apartment in St Leonard Shoreditch in November 2003. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable homes in St Leonard Shoreditch with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 invoiced yearly. The lease expiry date was on 3 June 2078. Given that there were 53 years as a residual term we estimated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of costs.
An example of a Lease Extension case 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 affected 2 flats. The unexpired lease term was 72.39 years.