The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in St Leonard Shoreditch may extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your St Leonard Shoreditch lease extension. Postponing the costs today simply increases the premium you will ultimately have to pay for a lease extension.
Leasehold residencies in St Leonard Shoreditch with in excess of one hundred years unexpired 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 maintenance charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better 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 want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Kyle owned a conversion apartment in St Leonard Shoreditch being sold with a lease of fraction over 59 years outstanding. Kyle on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last year we were phoned by Mr Joseph Bonnet , who purchased a basement apartment in St Leonard Shoreditch in May 2004. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative homes in St Leonard Shoreditch with a long lease were in the region of £270,000. The average ground rent payable was £55 collected per annum. The lease concluded in 2101. Given that there were 75 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension case for a St Leonard Shoreditch property 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 residue of the current lease was 72.39 years.