Bexleyheath leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Bexleyheath will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Bexleyheath with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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 are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Bexleyheath leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Oliver, started to get close to the 80-year mark with the lease on his basement apartment in Bexleyheath. Having bought his property two decades ago, the lease term was of minimal relevance. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Oliver arranged for a lease extension just ahead of time last July. Oliver and the landlord subsequently agreed on sum of £6,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £1,125.
Mr and Mrs. D Flores completed a purpose-built flat in Bexleyheath in March 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Bexleyheath with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease concluded in 2096. Taking into account 70 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
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 was in relation to 13 flats. The unexpired term as at the valuation date was 76 years.