With a residential leasehold property in Brockley, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years remaining. Anyone in Brockley with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years outstanding, under the current statute the freeholder can calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Brockley with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Brockley can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 procuring Brockley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful discussions with the freeholder of her ground floor apartment in Brockley, Imogen commenced the lease extension process just as the lease was approaching the critical 80-year mark. The lease extension was finalised in January 2013. The freeholder’s charges were kept to an absolute minimum.
Last April we were contacted by Mr N Young , who completed a basement flat in Brockley in May 2002. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Comparable properties in Brockley with an extended lease were valued around £265,000. The mid-range ground rent payable was £50 invoiced monthly. The lease lapsed in 2097. Having 73 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
An example of a Lease Extension decision 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.