It’s an underpublicised certainty that a Upney residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Upney property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Upney will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Using our service will provide you increased control over the value of your Upney leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the landlord of her leasehold flat in Upney, Robyn commenced the lease extension process just as the lease was approaching the critical eighty-year deadline. The transaction was concluded in February 2012. The freeholder’s costs were negotiated to below 550 pounds.
In 2014 we were approached by Mr and Mrs. J Rogers who, having purchased a garden flat in Upney in November 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable residencies in Upney with 100 year plus lease were in the region of £184,000. The average amount of ground rent was £55 billed per annum. The lease concluded in 2079. Given that there were 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.
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 related to 1 flat. The unexpired residue of the current lease was 61.36 years.