For anyone whose Chadwell Heath home is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Chadwell Heath with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with handle Chadwell Heath 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.
Half a year ago Logan, started to get near to the 80-year mark with the lease on his purpose- built apartment in Chadwell Heath. In buying his flat twenty years previously, the length of the lease was of minimal importance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Logan arranged for a lease extension at the eleventh hour last July. Logan and the freeholder subsequently settled on sum of £6,000 . If the lease had slid to less than 80 years, the price would have increased by a minimum £900.
Mr and Mrs. O Fournier moved into a studio flat in Chadwell Heath in August 1996. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Identical premises in Chadwell Heath with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease concluded in 2096. Considering the 70 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
An example of a Lease Extension decision for a Chadwell Heath property 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 unexpired lease term was 61.36 years.