As the the remaining lease term of a Lambeth domestic lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 100 years to run then this decrease may be of little impact 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 termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner than later. Many flat owners in Lambeth will qualify for this right; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Lambeth can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Lambeth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Hugo, started to get close to the 80-year threshold with the lease on his leasehold flat in Lambeth. Having bought his home 18 years ago, the length of the lease was of minimal relevance. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Hugo arranged for a lease extension at the eleventh hour in April. Hugo and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If the lease had slipped below eighty years, the premium would have increased by a minimum £925.
Last Christmas we were called by Mr and Mrs. K Morris , who purchased a first floor apartment in Lambeth in May 2012. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable properties in Lambeth with an extended lease were valued about £174,200. The average amount of ground rent was £55 billed annually. The lease came to a finish on 12 November 2075. Having 51 years unexpired we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.
An example of a Lease Extension case for a Lambeth residence is Flats 12A & 19, Evelyn Mansions Carlisle Place in June 2009. The Tribunal held that the price to be paid for the new lease of Flat 12A is £168,824, For the other flat the price was set at £169,110 This case was in relation to 2 flats. The unexpired term as at the valuation date was 56 years.