Upney Lease Extension - Free Consultation

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Why you should start your Upney lease extension

Why you should start your Upney lease extension today:

Increase your lease and increase your Upney property value

The only way is down when it comes to Upney lease terms. Upney flats that have a remaining term less than than 80 years will de-escalate in value at a rapid rate, and the cost to extend your lease will increase.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than one hundred 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 premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not issue a mortgage on a short lease

Lenders are really restricting their approach as regards to homes in Upney with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus restricting your market.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Leeds Building Society 85 years remaing from the start of the mortgage.

What makes us experts in Upney lease extensions?

Irrespective of whether you are a tenant or a landlord in Upney,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Upney valuers.

Upney Lease Extension Example Cases:

Alexandra, Upney, London,

After protracted negotiations with the freeholder of her purpose-built apartment in Upney, Alexandra initiated the lease extension process as the 80 year deadline was quickly approaching. The lease extension was finalised in May 2005. The landlord’s costs were negotiated to about 700 pounds.

Upney case:

Last September we were phoned by Ms Melissa Ward , who moved into a one bedroom flat in Upney in May 1997. 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. Comparable homes in Upney with an extended lease were valued around £210,000. The average ground rent payable was £50 invoiced per annum. The lease lapsed in 2102. Taking into account 80 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.

Decision in Redbridge

An example of a Lease Extension matter before the tribunal for a Upney premises is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case affected 1 flat. The remaining number of years on the lease was 61.36 years.