When it comes to residential leasehold property in Brockley, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Anyone in Brockley with a lease drawing near to 81 years left should seriously think of extending it sooner than later. Once the lease term has below 80 years remaining, under the current statute the freeholder can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Brockley with more than one hundred years remaining on the lease are sometimes regarded as a ‘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 freehold 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Brockley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brockley valuers.
Last October Luca, came perilously close to the eighty-year threshold with the lease on his studio apartment in Brockley. In buying his home 19 years ago, the unexpired term was of no relevance. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Luca extended the lease just under the wire last May. Luca and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If he had missed the deadline, the amount would have gone up by at least £1,150.
Last Spring we were approach by Mr and Mrs. K James , who bought a garden flat in Brockley in September 1997. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable flats in Brockley with a long lease were valued around £227,800. The mid-range ground rent payable was £45 billed every twelve months. The lease concluded on 16 February 2091. Having 65 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of 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 was in relation to 1 flat.