Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Bexleyheath. Inevitably, the length of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the flat or house has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Bexleyheath have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Bexleyheath lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Bexleyheath with over one hundred years outstanding 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Bexleyheath leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Isaac, started to get near to the 80-year threshold with the lease on his ground floor flat in Bexleyheath. Having bought his flat 18 years ago, the lease term was of no importance. by good luck, he recognised he would soon be paying an escalated premium for a lease extension. Isaac arranged for a lease extension at the eleventh hour last May. Isaac and the freeholder ultimately agreed on a premium of £6,000 . If the lease had descended below eighty years, the amount would have become more exhorbitant by a minimum £850.
In 2009 we were contacted by Mr E Lewis who, having bought a purpose-built apartment in Bexleyheath in March 2005. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative homes in Bexleyheath with 100 year plus lease were in the region of £203,200. The average ground rent payable was £65 collected every twelve months. The lease concluded on 15 April 2086. Taking into account 61 years unexpired we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus legals.
An example of a Lease Extension decision 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 unexpired term as at the valuation date was 76 years.