The closer a domestic lease in Bexleyheath gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Bexleyheath will meet the qualifying criteria; however a lawyer will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Bexleyheath,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bexleyheath valuers.
Riley owned a 2 bedroom flat in Bexleyheath being sold with a lease of just over fifty eight years outstanding. Riley on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to invoke his statutory right. Riley procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Autumn we were phoned by Mr and Mrs. L Rodríguez , who was assigned a lease of a ground floor flat in Bexleyheath in August 2001. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Similar residencies in Bexleyheath with 100 year plus lease were worth £210,600. The average ground rent payable was £45 invoiced every twelve months. The lease elapsed in 2088. Given that there were 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal 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 number of years remaining on the existing lease(s) was 76 years.