Unfortunately that a Upton Park residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Upton Park property prices.Where your lease has approximately ninety 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 falls below 80 years - otherwise a higher amount will be due. The majority of flat owners in Upton Park will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure Upton Park 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 conveyancer we work with provide it.
Two years ago Connor, came perilously close to the 80-year threshold with the lease on his garden flat in Upton Park. In buying his property two decades ago, the unexpired term was of no concern. Fortunately, he realised he needed to take action soon on a lease extension. Connor was able to extend his lease at the eleventh hour last April. Connor and the freeholder via the management company eventually settled on an amount of £5,500 . If the lease had gone to less than eighty years, the figure would have escalated by a minimum £1,125.
In 2009 we were phoned by Mr O Patel who, having was assigned a lease of a one bedroom flat in Upton Park in January 1995. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative flats in Upton Park with an extended lease were worth £183,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease end date was in 2082. Taking into account 57 years remaining we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.
An example of a Lease Extension case for a Upton Park premises is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case affected 1 flat. The unexpired residue of the current lease was 69.77 years.