St Leonard Shoreditch leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in St Leonard Shoreditch will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in St Leonard Shoreditch with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | 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. |
Retaining our service gives you increased control over the value of your St Leonard Shoreditch leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year William, came very near to the 80-year mark with the lease on his one bedroom flat in St Leonard Shoreditch. Having purchased his flat two decades ago, the unexpired term was of no importance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. William extended the lease just under the wire in April. William and the freeholder via the management company eventually settled on an amount of £5,500 . If he had missed the deadline, the premium would have gone up by a minimum £900.
Dr L Lefebvre took over the lease of a ground floor flat in St Leonard Shoreditch in June 1995. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable residencies in St Leonard Shoreditch with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 billed annually. The lease expired in 2102. Having 77 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
An example of a Lease Extension decision for a St Leonard Shoreditch premises 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 term was 72.39 years.