When it comes to domestic leasehold property in Brockley, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years remaining. Leasehold owners in Brockley with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has less than eighty years outstanding, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Brockley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brockley valuers.
Last October Kian, started to get close to the 80-year mark with the lease on his purpose- built flat in Brockley. Having purchased his home two decades ago, the length of the lease was of no relevance. Luckily, he realised he needed to take action soon on a lease extension. Kian extended the lease at the eleventh hour in April. Kian and the landlord who owned the flat above eventually agreed on sum of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £1,025.
In 2010 we were e-mailed by Mrs B Ali who, having owned a first floor flat in Brockley in May 2004. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable premises in Brockley with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease ran out in 2079. Taking into account 53 years remaining we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including costs.
An example of a Lease Extension decision for a Brockley residence 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.