Bexleyheath Lease Extension - Free Consultation

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Why you should start your Bexleyheath lease extension

Top reasons for lease extension now:

A Bexleyheath lease depreciates with the years remaining on the lease.

When it comes to residential leasehold premises in Bexleyheath, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years remaining. Residents in Bexleyheath with a lease approaching 81 years left should seriously consider extending it as soon as possible. When a lease has below eighty years left, under the current legislation the freeholder can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.

Bexleyheath property with a lease extension is almost the same value as a freehold

Leasehold properties in Bexleyheath with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Lenders may decide not to lend on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Lender Requirement
Chelsea Building Society 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.
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.
Halifax Minimum 70 years from the date of the mortgage.
Lloyds TSB Scotland Mortgage term plus 30 years subject to an overall minimum term of 70 years
Royal Bank of Scotland Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.

Get in touch with one of our Bexleyheath lease extension solicitors or enfranchisement solicitors

Lease extensions in Bexleyheath can be a difficult process. We recommend you get professional help from a conveyancer 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.

Bexleyheath Lease Extension Case Studies:

Harriet, Bexleyheath, South East London,

Subsequent to protracted correspondence with the landlord of her garden flat in Bexleyheath, Harriet initiated the lease extension process as the eighty year deadline was swiftly advancing. The transaction was concluded in November 2007. The landlord’s fees were restricted to approximately 650 GBP.

Bexleyheath case:

Mr Joshua Lefèvre completed a one bedroom flat in Bexleyheath in November 1996. The dilemma was if we could estimate the price could be to prolong the lease by a further 90 years. Similar residencies in Bexleyheath with a long lease were in the region of £198,400. The mid-range ground rent payable was £65 collected yearly. The lease ended on 24 January 2080. Considering the 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of costs.

Decision in Bexley

An example of a Lease Extension matter before the tribunal for a Bexleyheath property 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 affected 13 flats. The unexpired lease term was 76 years.