On the balance of probabilities if you own a flat in Bexleyheath you actually own a long leasehold interest over your property
Leasehold premises in Bexleyheath with over one hundred years remaining 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Half a year ago Archie, started to get close to the 80-year threshold with the lease on his studio apartment in Bexleyheath. Having bought his home two decades ago, the lease term was of little concern. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Archie extended the lease at the eleventh hour last September. Archie and the freeholder ultimately agreed on the final figure of £5,500 . If the lease had fallen to less than 80 years, the figure would have escalated by a minimum £1,100.
In 2011 we were contacted by Mr and Mrs. T François who, having was assigned a lease of a one bedroom apartment in Bexleyheath in April 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Bexleyheath with an extended lease were in the region of £246,800. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish in 2075. Considering the 50 years outstanding we calculated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of 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 related to 13 flats. The unexpired term as at the valuation date was 76 years.