The market value of a leasehold property in Brockley depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded in advance of the 80 year mark. Current legislation entitles Brockley qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Brockley with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Coventry Building Society | |
| Santander | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Two years ago Isaac, came perilously near to the eighty-year mark with the lease on his leasehold apartment in Brockley. In buying his property two decades ago, the lease term was of minimal bearing. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Isaac arranged for a lease extension just under the wire last June. Isaac and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If the lease had slipped below 80 years, the amount would have escalated by a minimum £1,075.
Last month we were e-mailed by Ms Leah Phillips , who acquired a newly refurbished flat in Brockley in August 2010. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparable premises in Brockley with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease elapsed on 6 May 2082. Taking into account 56 years outstanding we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Brockley premises 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 was in relation to 1 flat.