The re-sale value of a leasehold property in Bexleyheath is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded in advance of the eighty year threshold. Statute entitles Bexleyheath qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bexleyheath can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bexleyheath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Jacob, started to get close to the eighty-year threshold with the lease on his studio apartment in Bexleyheath. In buying his property 19 years ago, the lease term was of minimal significance. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Jacob extended the lease just under the wire last March. Jacob and the freeholder eventually agreed on the final figure of £5,000 . If he had missed the deadline, the amount would have increased by a minimum £1,050.
Last October we were e-mailed by Dr C Adams , who owned a ground floor apartment in Bexleyheath in August 2008. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical properties in Bexleyheath with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease elapsed on 10 March 2102. Considering the 77 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
An example of a Lease Extension case for a Bexleyheath flat 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 number of years remaining on the existing lease(s) was 76 years.