When it comes to residential leasehold property in Balham, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Balham with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has fewer than eighty years left, under the relevant statute the freeholder can calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
|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.|
The conveyancers that we work with handle Balham 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.
Off the back of lengthy negotiations with the freeholder of her basement apartment in Balham, Zoe initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The lease extension was finalised in May 2014. The freeholder’s costs were restricted to about 450 pounds.
Mrs Erin Morel owned a purpose-built flat in Balham in May 1995. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar flats in Balham with 100 year plus lease were in the region of £227,800. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed on 16 October 2086. Considering the 65 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.
An example of a Lease Extension decision for a Balham residence 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 related to 1 flat. The unexpired residue of the current lease was 56.67 years.