Bexleyheath leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Flat owners in Bexleyheath will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and steps to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Bexleyheath with in excess of one hundred years remaining on the lease are sometimes referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with handle 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 lawyer we work with provide it.
Subsequent to lengthy discussions with the freeholder of her first floor flat in Bexleyheath, Naomi commenced the lease extension process just as her lease was approaching the critical 80-year deadline. The lease extension was concluded in May 2014. The landlord’s fees were kept to an absolute minimum.
In 2013 we were e-mailed by Dr U Jackson who, having owned a first floor apartment in Bexleyheath in June 2004. We are asked if we could approximate the price would be to prolong the lease by 90 years. Identical homes in Bexleyheath with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 collected annually. The lease finished on 1 February 2102. Considering the 76 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
An example of a Lease Extension matter before the tribunal 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 was in relation to 13 flats. The remaining number of years on the lease was 76 years.