Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Leyton. Inevitably, the length of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Leyton have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give due consideration before putting off your Leyton lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold properties in Leyton with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Leyton can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Leyton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Oliver, came dangerously near to the 80-year threshold with the lease on his first floor flat in Leyton. In buying his home two decades ago, the lease term was of no concern. by good luck, he realised he needed to take action soon on Extending the lease. Oliver was able to extend his lease just under the wire last August. Oliver and the landlord who owned the flat above eventually agreed on sum of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,125.
Last Winter we were approach by Ms J Mason , who was assigned a lease of a one bedroom apartment in Leyton in September 2002. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical residencies in Leyton with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed every twelve months. The lease came to a finish in 2102. Considering the 78 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
An example of a Freehold Enfranchisement case for a Leyton premises is 12 Nutfield Road in July 2014. the Tribunal judged that the price to be paid by the applicants for the freehold interest should be £19,572 This case was in relation to 2 flats. The number of years remaining on the existing lease(s) was 72.02 years.