Bexleyheath leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Bexleyheath will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Bexleyheath with more than 100 years outstanding on the lease are often 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 freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers 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.
Trailing protracted negotiations with the freeholder of her studio apartment in Bexleyheath, Eleanor commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The lease extension was concluded in February 2005. The landlord’s charges were kept to an absolute minimum.
In 2009 we were e-mailed by Dr W Bertrand who, having completed a studio apartment in Bexleyheath in April 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative residencies in Bexleyheath with an extended lease were worth £200,800. The average ground rent payable was £65 billed monthly. The lease expired in 2086. Having 60 years left we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus legals.
An example of a Lease Extension case 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 was 76 years.