St Leonard Shoreditch leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in St Leonard Shoreditch will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your St Leonard Shoreditch leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her purpose-built flat in St Leonard Shoreditch, Gemma started the lease extension process as the eighty year threshold was quickly coming. The legal work completed in November 2009. The freeholder’s charges were negotiated to slightly above six hundred GBP.
In 2010 we were contacted by Dr F Lee who, having moved into a recently refurbished apartment in St Leonard Shoreditch in April 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Identical homes in St Leonard Shoreditch with a long lease were valued around £290,000. The average ground rent payable was £60 collected every twelve months. The lease lapsed in 2105. Taking into account 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
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 related to 2 flats. The unexpired lease term was 72.39 years.