Old Ford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Old Ford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Old Ford you must check if your lease has between seventy and ninety years left. There are good reasons why a Old Ford flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Old Ford with in excess of 100 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 premises. 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 |
|---|---|
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you enhanced control over the value of your Old Ford leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her garden apartment in Old Ford, Phoebe initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction completed in October 2005. The landlord’s costs were negotiated to less than 650 GBP.
In 2009 we were phoned by Mr V López who, having bought a first floor flat in Old Ford in April 2007. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Old Ford with an extended lease were worth £275,000. The average amount of ground rent was £55 collected monthly. The lease ended in 2102. Given that there were 76 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
An example of a Freehold Enfranchisement decision for a Old Ford flat is 26 Rhondda Grove in June 2009. The net price payable by the leaseholders as determined by the Tribunal was £3,015.13. This comprised £11,300 premium for the reversion less £8,284.87 costs as ordered by the County Court.