When it comes to long leasehold premises in Camberwell, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Residents in Camberwell with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has less than eighty years left, under the current statute the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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; |
| Birmingham Midshires | 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. |
Regardless of whether you are a tenant or a freeholder in Camberwell,the lease extension lawyers that we work with will always be willing 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.
Kai owned a studio flat in Camberwell on the market with a lease of just over sixty years left. Kai informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kai to invoke his statutory right. Kai obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2011 we were phoned by Dr Kelsey Edwards who, having moved into a recently refurbished apartment in Camberwell in May 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical premises in Camberwell with an extended lease were valued around £260,200. The average amount of ground rent was £65 billed annually. The lease ended in 2091. Given that there were 66 years unexpired we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Camberwell premises 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 lease term was 968 years.