Bexley Lease Extension - Free Consultation

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Main reasons to commence your Bexley lease extension


Why you should commence your Bexley lease extension today:

Increase your lease and increase your Bexley property value

The market value of Bexley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than 80 years

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Lenders will not lend on a short lease

Mortgage companies are tightening their criteria and many now expect flats to have a minimum of sixty if not seventy years left at the end of the mortgage. As many flats in Bexley were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.
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.
Royal Bank of Scotland Mortgage term plus 30 years.

Get in touch with one of our Bexley lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Bexley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bexley valuers.

Bexley Lease Extension Case Summaries:

Tommy, Bexley, South East London

Half a year ago Tommy, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Bexley. In buying his flat two decades ago, the lease term was of no relevance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Tommy arranged for a lease extension just ahead of time last July. Tommy and the freeholder eventually agreed on an amount of £6,000 . If the lease had dropped lower than 80 years, the figure would have increased by a minimum £1,050.

Bexley case:

In 2014 we were approached by Dr Stanley Johnson who, having purchased a one bedroom flat in Bexley in January 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Identical premises in Bexley with an extended lease were valued about £275,000. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed in 2093. Taking into account 68 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.

Decision in Greenwich

An example of a Lease Extension matter before the tribunal for a Bexley property is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.