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Top reasons for North Ockendon lease extension

Main reasons to commence your North Ockendon lease extension today:

A North Ockendon lease depreciates with the years remaining on the lease.

North Ockendon residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.

North Ockendon property with a lease extension is almost the same value as a freehold

Leasehold properties in North Ockendon with in excess of one hundred years unexpired 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may decide not to lend with a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically banks were content with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Lender Requirement
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Halifax Minimum 70 years from the date of the mortgage.
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
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.

What makes us experts in North Ockendon lease extensions?

The conveyancers that we work with undertake North Ockendon 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 conveyancing solicitor we work with provide it.

North Ockendon Lease Extension Case Studies:

Charlie, North Ockendon, London

In recent months Charlie, came perilously near to the eighty-year threshold with the lease on his leasehold apartment in North Ockendon. Having bought his flat 18 years ago, the length of the lease was of minimal importance. Luckily, he recognised he needed to take steps soon on a lease extension. Charlie arranged for a lease extension just under the wire last August. Charlie and the freeholder in the end settled on sum of £5,500 . If the lease had slipped lower than eighty years, the figure would have become more costly by a minimum £1,100.

North Ockendon case:

In 2014 we were called by Ms Ella Lefèvre who, having took over the lease of a one bedroom apartment in North Ockendon in June 1995. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in North Ockendon with a long lease were worth £225,800. The mid-range amount of ground rent was £60 collected annually. The lease elapsed in 2085. Considering the 60 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £25,700 and £29,600 exclusive of fees.

Decision in Havering

An example of a Lease Extension matter before the tribunal for a North Ockendon premises is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case affected 1 flat. The unexpired term as at the valuation date was 57.5 years.