Top reasons for Brockley lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3> Top reasons for lease extension now:
</h3>
<h4>
Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/brockley">Brockley</a> property value </h4>
<p> Unfortunately that a Brockley residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Brockley property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Brockley will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
<h4>Brockley property with a lease extension is almost the same value as a freehold</h4>
<p>
Leasehold premises in Brockley with in excess of one hundred years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it. <h4>Lenders may decide not to lend on a short lease</h4>
Most mortgage lenders have tightened lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are regarded as insufficient for lending purposes.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Accord Mortgages</td>
<td> 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.
</tr>
<tr>
<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
</tr>
<tr>
<td>Godiva Mortgages</td>
<td> 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.
</tr>
<tr>
<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
</tr>
</tbody>
</table>
</div>
</div>
<h4> Get in touch with one of our Brockley lease extension solicitors or enfranchisement solicitors
</h4>
<p>
The lawyers that we work with handle Brockley 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 conveyancing solicitor we work with provide it.
<h4>
Brockley Lease Extension Example Cases:
</h4>
<h5> Jordan, Brockley, South East London,</h5>
<p> After unsuccessful discussions with the landlord of her one bedroom apartment in Brockley, Jordan started the lease extension process just as her lease was nearing the critical 80-year mark. The transaction was concluded in November 2014. The landlord’s costs were kept to an absolute minimum.
<h5>Brockley case:</h5>
<p>
In 2014 we were phoned by Mrs Amber Kelly who, having purchased a purpose-built flat in Brockley in August 2010. The question was if we could estimate the price would be for a 90 year lease extension. Similar homes in Brockley with an extended lease were worth £250,000. The average ground rent payable was £50 billed monthly. The lease lapsed in 2095. Considering the 69 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
<div> <h5>Decision in Lewisham</h5>
<p>
An example of a Lease Extension decision for a Brockley property is
Flat b 14 Kemble Road in May 2014. The Tribunal assessed the value of the premium payable for the lease extension to be £9,761
This case affected 1 flat.
</p>
</div>
</div>