With a residential leasehold premises in St Leonard Shoreditch, you are in fact renting it for a certain amount of time. In recent years 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 increases markedly especially once there are fewer than eighty years left. Leasehold owners in St Leonard Shoreditch with a lease nearing 81 years left should seriously think of extending it as soon as possible. When a lease has under 80 years remaining, under the current legislation the landlord is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 lawyer we work with provide it.
14 months ago Leo, came critically close to the 80-year threshold with the lease on his first floor apartment in St Leonard Shoreditch. In buying his flat two decades ago, the unexpired term was of little interest. by good luck, he recognised he needed to take action soon on a lease extension. Leo arranged for a lease extension at the eleventh hour last July. Leo and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had fallen to less than 80 years, the price would have increased by a minimum £975.
Last November we were e-mailed by Dr Caleb Bernard , who was assigned a lease of a ground floor apartment in St Leonard Shoreditch in October 1995. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in St Leonard Shoreditch with a long lease were in the region of £260,000. The average ground rent payable was £50 collected quarterly. The lease terminated in 2097. Given that there were 71 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
An example of a Lease Extension case 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 affected 2 flats. The unexpired term as at the valuation date was 72.39 years.