On the balance of probabilities if you own a flat in Balham you actually own a long leasehold interest over your property
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|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.|
|Coventry Building Society||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.|
|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
|Yorkshire 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.|
Retaining our service will provide you enhanced control over the value of your Balham leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Dexter, came seriously near to the eighty-year mark with the lease on his leasehold flat in Balham. In buying his property two decades ago, the length of the lease was of minimal relevance. by good luck, he recognised he would soon be paying an escalated premium for Extending the lease. Dexter was able to extend his lease just under the wire in August. Dexter and the landlord in the end settled on an amount of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,125.
In 2012 we were phoned by Dr Rachael Hall who, having acquired a newly refurbished apartment in Balham in May 2011. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Balham with an extended lease were worth £200,800. The average amount of ground rent was £65 collected annually. The lease terminated in 2080. Considering the 60 years remaining we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Balham property is First Floor Flat 152a Ramsden Road in June 2009. The net result of the tribunals calculation produced a premium payable of £23,975. This case was in relation to 1 flat. The unexpired lease term was 56.67 years.