Canning Town leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Canning Town residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Canning Town you should check if your lease has between 70 and 90 years remaining. There are good reasons why a Canning Town leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Canning Town 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.
Adam owned a high value apartment in Canning Town on the market with a lease of just over 61 years left. Adam informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Adam to invoke his statutory right. Adam obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last Christmas we were called by Ms Samantha Bennett , who took over the lease of a ground floor flat in Canning Town in October 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Similar residencies in Canning Town with an extended lease were valued around £254,200. The mid-range ground rent payable was £60 billed annually. The lease expiry date was in 2077. Given that there were 51 years left we approximated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Canning Town premises is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case affected 1 flat. The unexpired residue of the current lease was 69.77 years.