Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Upminster. Clearly, the length of lease left reduces as time goes by. This is often ignored and only becomes a problem when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Upminster have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give due consideration before putting off your Upminster lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Upminster,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Upminster valuers.
Harvey was the the leasehold proprietor of a studio apartment in Upminster being marketed with a lease of a little over 72 years left. Harvey on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Harvey to exercise his statutory right. Harvey procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last year we were e-mailed by Dr N González , who acquired a ground floor flat in Upminster in February 2010. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable premises in Upminster with an extended lease were valued about £233,200. The average amount of ground rent was £60 collected quarterly. The lease end date was in 2087. Given that there were 61 years remaining we approximated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 plus legals.
An example of a Lease Extension case for a Upminster flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The unexpired term was 57.5 years.