Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Eltham. Clearly, the period of lease left reduces as time goes by. This is often ignored and only becomes a problem when the residence needs 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 Eltham have the legal entitlement to extend the lease for a further 90 years under statute. You should give careful attention before putting off your Eltham lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
Leasehold residencies in Eltham with more than one hundred years remaining 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Eltham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Eltham valuers.
Michael owned a conversion apartment in Eltham being marketed with a lease of a little over fifty eight years outstanding. Michael on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael obtained expert advice and secured an acceptable deal informally and readily saleable.
In 2011 we were phoned by Mr W Taylor who, having took over the lease of a basement apartment in Eltham in June 2012. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar residencies in Eltham with a long lease were valued about £267,600. The average ground rent payable was £65 invoiced yearly. The lease expired on 1 October 2093. Considering the 67 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 plus costs.
An example of a Lease Extension matter before the tribunal for a Eltham premises 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 was in relation to 1 flat.