Unfortunately that a West Ham residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the West Ham property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in West Ham will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Halifax | |
| Yorkshire Building Society |
Lease extensions in West Ham can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring West Ham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Kyle, came precariously close to the 80-year threshold with the lease on his purpose- built flat in West Ham. In buying his flat 18 years ago, the unexpired term was of little relevance. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Kyle arranged for a lease extension just ahead of time in July. Kyle and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £1,125.
Last Winter we were called by Dr Kelsey Thomas , who completed a purpose-built apartment in West Ham in August 1998. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative premises in West Ham with an extended lease were valued about £261,600. The average amount of ground rent was £60 billed monthly. The lease end date was on 11 July 2078. Given that there were 52 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 not including expenses.
An example of a Lease Extension decision for a West Ham flat 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 related to 1 flat. The unexpired residue of the current lease was 69.77 years.