When it comes to domestic leasehold premises in Bexleyheath, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Residents in Bexleyheath with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has under eighty years outstanding, under the current statute the freeholder can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Bexleyheath with in excess of 100 years left 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires |
The lawyers that we work with handle Bexleyheath 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.
Jack was the the leasehold proprietor of a conversion flat in Bexleyheath being sold with a lease of just over 59 years outstanding. Jack informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last April we were approach by Dr Emily Brown , who owned a first floor flat in Bexleyheath in July 2010. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Bexleyheath with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 collected monthly. The lease terminated in 2081. Taking into account 55 years remaining we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.
An example of a Lease Extension decision for a Bexleyheath premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The unexpired lease term was 76 years.