Addiscombe leases on residential properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Addiscombe will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Addiscombe with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Addiscombe 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 conveyancing solicitor we work with provide it.
Trailing unsuccessful correspondence with the freeholder of her one bedroom apartment in Addiscombe, Daisy initiated the lease extension process as the 80 year threshold was rapidly advancing. The transaction was concluded in July 2005. The landlord’s fees were kept to an absolute minimum.
In 2011 we were phoned by Mr C Watson who, having was assigned a lease of a studio flat in Addiscombe in November 1995. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable properties in Addiscombe with a long lease were valued about £246,800. The mid-range ground rent payable was £60 collected yearly. The lease concluded on 19 November 2075. Considering the 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including professional charges.
An example of a Freehold Enfranchisement case for a Addiscombe property is 29 Woodstock Road in April 2014. the Tribunal determined that the premiums to be paid into court in respect of the purchase of the freehold registered at HMLR under Title N0.SY3997 should be £7,217. This case related to 4 flats. The number of years remaining on the existing lease(s) was 98 years.