The only way is down when it comes to Brockley lease terms. Brockley leaseholds that have a lease term fewer than eighty years will de-escalate in market price even faster, and the cost to extend your lease will rise.
Leasehold residencies in Brockley with more than one hundred years left on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
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 lawyer we work with provide it.
In 2014 Alexander, came critically near to the eighty-year threshold with the lease on his garden flat in Brockley. In buying his home 18 years previously, the length of the lease was of no bearing. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Alexander was able to extend his lease just ahead of time in June. Alexander and the landlord who owned the flat above subsequently settled on sum of £6,000 . If the lease had fallen to less than eighty years, the sum would have gone up by at least £1,075.
In 2011 we were phoned by Mr K Thomas who, having moved into a studio apartment in Brockley in March 2002. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative residencies in Brockley with 100 year plus lease were worth £218,000. The average ground rent payable was £45 collected quarterly. The lease concluded in 2089. Having 63 years left we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Brockley flat 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.