Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Hornchurch. Inevitably, the period of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Hornchurch have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. You should give careful consideration before delaying your Hornchurch lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease
Leasehold premises in Hornchurch with in excess of one hundred years remaining 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Hornchurch 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 conveyancer we work with provide it.
Subsequent to unsuccessful correspondence with the landlord of her ground floor flat in Hornchurch, Laura initiated the lease extension process as the 80 year deadline was fast nearing. The lease extension was concluded in April 2006. The freeholder’s costs were restricted to less than 500 pounds.
Last Summer we were e-mailed by Mr and Mrs. J Vincent , who moved into a garden flat in Hornchurch in May 1997. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Hornchurch with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed annually. The lease ended in 2098. Given that there were 73 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
An example of a Lease Extension case for a Hornchurch residence is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case was in relation to 1 flat. The remaining number of years on the lease was 57.5 years.