Camberwell leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Camberwell enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Camberwell you should see if your lease has between 70 and ninety years remaining. There are good reasons why a Camberwell flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Camberwell,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Camberwell valuers.
Jayden owned a high value flat in Camberwell being marketed with a lease of a few days over 61 years outstanding. Jayden on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Mr J Brown was assigned a lease of a one bedroom flat in Camberwell in October 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical premises in Camberwell with 100 year plus lease were valued around £210,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ran out on 27 May 2106. Taking into account 80 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
An example of a Freehold Enfranchisement case for a Camberwell residence 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 affected 3 flats. The unexpired residue of the current lease was 968 years.