Old Ford leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Old Ford will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain cases you may not qualify. There are prescribed timetables and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Old Ford with over one hundred years unexpired 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Old Ford,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Old Ford valuers.
Seth owned a studio flat in Old Ford on the market with a lease of a few days over sixty years unexpired. Seth informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Seth to invoke his statutory right. Seth obtained expert advice and secured an acceptable resolution informally and sell the property.
Last Autumn we were approach by Dr Kai Wood , who owned a basement flat in Old Ford in May 2012. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar properties in Old Ford with a long lease were valued around £275,000. The mid-range ground rent payable was £55 billed every twelve months. The lease terminated in 2103. Considering the 77 years outstanding we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
An example of a Freehold Enfranchisement case 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.