The nearer a residential lease in Honor Oak gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. The majority of flat owners in Honor Oak will qualify for this right; however a conveyancer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Honor Oak lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of unsuccessful discussions with the landlord of her leasehold flat in Honor Oak, Melissa commenced the lease extension process just as her lease was nearing the all-important 80-year threshold. The transaction completed in September 2008. The freeholder’s fees were restricted to below 450 GBP.
Last month we were called by Dr Lewis Bell , who owned a ground floor apartment in Honor Oak in August 1998. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Identical flats in Honor Oak with a long lease were valued around £275,000. The average ground rent payable was £45 collected every twelve months. The lease came to a finish in 2094. Given that there were 69 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
An example of a Lease Extension case for a Honor Oak residence 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 61.81 years.