On the balance of probabilities if you own a flat in Balham you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a freeholder in Balham,the lease extension solicitors 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 Balham valuers.
Off the back of unsuccessful discussions with the landlord of her two bedroom flat in Balham, Isabel initiated the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work was finalised in March 2012. The landlord’s fees were kept to an absolute minimum.
Last year we were phoned by Dr S Turner , who moved into a ground floor flat in Balham in April 1999. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Balham with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated on 8 March 2099. Given that there were 73 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
An example of a Lease Extension case for a Balham premises is First Floor Flat 152a Ramsden Road in June 2009. The net result of the tribunals calculation produced a premium payable of £23,975. This case was in relation to 1 flat. The unexpired lease term was 56.67 years.