It’s an underpublicised certainty that a Old Ford residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Old Ford property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Old Ford will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Old Ford with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Old Ford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Old Ford valuers.
Following lengthy negotiations with the freeholder of her first floor apartment in Old Ford, Ellen commenced the lease extension process as the 80 year threshold was quickly approaching. The lease extension completed in January 2014. The landlord’s fees were negotiated to slightly above 650 GBP.
Last June we were approach by Mr Felix Hall , who completed a one bedroom apartment in Old Ford in July 1996. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Old Ford with 100 year plus lease were valued about £264,000. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish on 14 April 2079. Having 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Old Ford property 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.