When it comes to long leasehold property in St Leonard Shoreditch, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years left. Residents in St Leonard Shoreditch with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has below 80 years left, under the relevant Act the landlord can calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in St Leonard Shoreditch with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | 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. |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Last Autumn Jack, started to get near to the eighty-year threshold with the lease on his basement apartment in St Leonard Shoreditch. In buying his home twenty years ago, the length of the lease was of minimal relevance. Thankfully, he recognised he would soon be paying way over the odds for a lease extension. Jack arranged for a lease extension at the eleventh hour last July. Jack and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had slipped lower than 80 years, the amount would have escalated by at least £1,000.
In 2011 we were phoned by Mrs S Allen who, having purchased a garden apartment in St Leonard Shoreditch in September 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in St Leonard Shoreditch with a long lease were in the region of £208,200. The average ground rent payable was £65 billed monthly. The lease elapsed on 9 August 2086. Considering the 61 years left we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus 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 related to 2 flats. The remaining number of years on the lease was 72.39 years.