With a long leasehold property 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 become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years left. Residents in St Leonard Shoreditch with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has under 80 years remaining, under the current Act the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in St Leonard Shoreditch with over one hundred years left 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless 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 experience and the close ties they enjoy with St Leonard Shoreditch valuers.
Last Christmas Jamie, came perilously close to the eighty-year threshold with the lease on his garden flat in St Leonard Shoreditch. In buying his home two decades ago, the lease term was of little bearing. Fortunately, he realised he needed to take action soon on a lease extension. Jamie was able to extend his lease just ahead of time in September. Jamie and the landlord in the end settled on a premium of £6,000 . If the lease had fallen below eighty years, the amount would have increased by a minimum £925.
Mr and Mrs. F David was assigned a lease of a garden apartment in St Leonard Shoreditch in April 2011. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical flats in St Leonard Shoreditch with 100 year plus lease were valued about £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ended on 16 August 2098. Given that there were 72 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
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 remaining number of years on the lease was 72.39 years.