Ilford leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Ilford will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Ilford with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Ilford 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 lawyer we work with provide it.
In recent months Seth, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Ilford. In buying his flat two decades ago, the length of the lease was of little significance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Seth was able to extend his lease just in the nick of time last September. Seth and the landlord in the end agreed on an amount of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £1,150.
Last Summer we were phoned by Mr and Mrs. J Bonnet , who owned a basement apartment in Ilford in November 2012. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative homes in Ilford with an extended lease were worth £191,000. The average ground rent payable was £65 invoiced yearly. The lease expired on 5 March 2083. Considering the 58 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including legals.
An example of a Lease Extension decision for a Ilford 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 was in relation to 1 flat. The unexpired term was 61.36 years.