Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Old Ford. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Old Ford have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give due attention before putting off your Old Ford lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
Regardless of whether you are a tenant or a landlord in Old Ford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Old Ford valuers.
After lengthy discussions with the landlord of her first floor apartment in Old Ford, Rachel started the lease extension process as the eighty year mark was fast coming. The transaction completed in July 2010. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were phoned by Mr Sebastian Anderson , who completed a recently refurbished apartment in Old Ford in July 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Old Ford with 100 year plus lease were in the region of £173,800. The average ground rent payable was £60 invoiced annually. The lease lapsed on 23 February 2080. Having 55 years left we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.
An example of a Freehold Enfranchisement decision for a Old Ford premises 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.