When it comes to residential leasehold property in Camberwell, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years remaining. Anyone in Camberwell with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has below eighty years remaining, under the current Act the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Camberwell,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Camberwell valuers.
Off the back of unsuccessful discussions with the landlord of her leasehold apartment in Camberwell, Phoebe started the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension completed in June 2005. The landlord’s costs were negotiated to about 500 GBP.
Mr Blake Bailey purchased a purpose-built flat in Camberwell in October 2011. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical premises in Camberwell with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ran out in 2096. Taking into account 71 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Camberwell property is 28 Valmar Road in June 2013. this was a case with an absentee freeholder. As a result the leaseholders applied to the Lambeth County Court for an order dispensing with the giving of a notice of claim. On 25 April 2013 District Judge Zimmels made a vesting order and directed that the matter should be transferred to this tribunal to determine the premium. The tribunal concluded on a figure of £1,125 This case was in relation to 3 flats. The unexpired term was 968 years.