With a long leasehold property in Eltham, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Leasehold owners in Eltham with a lease nearing 81 years left should seriously consider extending it sooner as opposed to later. When a lease has below eighty years left, under the current statute the freeholder is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Eltham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Eltham valuers.
Off the back of unsuccessful discussions with the freeholder of her purpose-built flat in Eltham, Bethany started the lease extension process as the eighty year mark was swiftly approaching. The transaction was concluded in October 2009. The landlord’s charges were restricted to a tad over 600 GBP.
Last Christmas we were phoned by Ms K Petit , who moved into a newly refurbished flat in Eltham in October 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Eltham with an extended lease were valued around £290,000. The average ground rent payable was £45 invoiced yearly. The lease terminated in 2098. Considering the 72 years as a residual term we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Eltham flat 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 related to 1 flat.