Honor Oak Lease Extension - Free Consultation

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Top reasons for Honor Oak lease extension


Top reasons for lease extension now:

Increase your lease and increase your Honor Oak property value

The only way is down when it comes to Honor Oak lease terms. Honor Oak flats that have a lease term less than than 80 years will drop in market price even faster, and the cost to extend your lease will rise.

Honor Oak property with a lease extension 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 equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lenders may decide not to issue a mortgage with a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to get nervous at around 75 years. This may be problematic as and when you come to market or refinance your flat as it will be effectively unmortgageable. You may have no immediate desire to sell but when you do your buyer must wait 2 years before being able to exercise the right to a an extension to the lease.

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;
Godiva Mortgages 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.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years.

What makes us experts in Honor Oak lease extensions?

Using our service gives you increased control over the value of your Honor Oak leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Honor Oak Lease Extension Case Studies:

Samantha, Honor Oak, South East London,

After lengthy negotiations with the landlord of her two bedroom flat in Honor Oak, Samantha initiated the lease extension process as the eighty year deadline was rapidly coming. The lease extension was concluded in November 2007. The landlord’s fees were restricted to under four hundred GBP.

Honor Oak case:

In 2012 we were contacted by Dr M Bennett who, having moved into a basement apartment in Honor Oak in June 1997. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable properties in Honor Oak with a long lease were worth £250,400. The mid-range amount of ground rent was £65 collected per annum. The lease finished on 25 November 2088. Having 64 years remaining we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus fees.

Decision in Lewisham

An example of a Lease Extension decision for a Honor Oak flat is Flat 1 40-42 Ewelme Road in August 2012. the Tribunal assessed the premium for the lease extension in the sum of £11,800 This case affected 1 flat. The remaining number of years on the lease was 61.81 years.