Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in New Cross. Clearly, the length of lease remaining shortens over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in New Cross have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your New Cross lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease
Leasehold properties in New Cross with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle New Cross 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.
Isaac was the the leasehold proprietor of a high value flat in New Cross on the market with a lease of a few days over fifty eight years remaining. Isaac informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
In 2009 we were called by Ms C Kelly who, having owned a ground floor apartment in New Cross in October 2001. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Identical properties in New Cross with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 collected annually. The lease lapsed on 3 May 2104. Having 79 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.
An example of a Freehold Enfranchisement case for a New Cross property is 41 Endwell Road in March 2013. this matter relateed to the acquisition of the freehold of a mid- terraced Victorian house converted into three separate self-contained dwellings. By an order dated 28/11/2012, Deputy District Judge Cole in the Bromley County Court held that the leaseholders were entitled to acquire the freehold and directed that the premium payable be determined by this Tribunal. The Tribunal assessed the premium to be £14,753 This case was in relation to 3 flats. The remaining number of years on the lease was 80.01 years.