The re-sale value of a leasehold property in St Leonard Shoreditch is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded well before the eighty year mark. Statute enables St Leonard Shoreditch qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in St Leonard Shoreditch with in excess of one hundred years outstanding 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 buying the freehold unless savings on ground rent and service charges justify it.
Lender | Requirement |
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Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
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. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle St Leonard Shoreditch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Tyler, started to get close to the 80-year mark with the lease on his studio flat in St Leonard Shoreditch. Having bought his property two decades ago, the lease term was of no concern. As luck would have it, he realised he needed to take steps soon on Extending the lease. Tyler extended the lease at the eleventh hour in January. Tyler and the landlord in the end agreed on a premium of £5,500 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £1,025.
Mr and Mrs. N Nelson completed a garden apartment in St Leonard Shoreditch in November 1999. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical homes in St Leonard Shoreditch with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expired in 2097. Having 72 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
An example of a Lease Extension matter before the tribunal for a St Leonard Shoreditch residence 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 number of years remaining on the existing lease(s) was 72.39 years.