There is no doubt about it a leasehold flat or house in Greenwich is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Greenwich will qualify for this right; that being said a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you increased control over the value of your Greenwich leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Freddie owned a high value flat in Greenwich being marketed with a lease of fraction over 72 years outstanding. Freddie informally contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert advice and secured satisfactory deal informally and readily saleable.
Dr V Campbell took over the lease of a newly refurbished flat in Greenwich in August 1996. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical properties in Greenwich with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced monthly. The lease elapsed in 2076. Taking into account 51 years unexpired we approximated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of expenses.
An example of a Lease Extension case for a Greenwich residence is 73 Walerand Road in August 2012. the result of the findings of the Tribunal led to a premium to be paid for the extended lease in respect of Flat 73 in the sum of £10,040. The premium applicable in respect of Flat 85 was £5,710. This case was in relation to 2 flats. The number of years remaining on the existing lease(s) was 72 years.