With a long leasehold property in Camberwell, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Leasehold owners in Camberwell with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has below 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Yorkshire Building Society | 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. |
Lease extensions in Camberwell can be a difficult process. We recommend you obtain 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 in-depth market knowledge procuring Camberwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Dylan, came seriously close to the 80-year mark with the lease on his ground floor apartment in Camberwell. Having bought his home 18 years previously, the lease term was of minimal concern. As luck would have it, he noticed he needed to take action soon on a lease extension. Dylan arranged for a lease extension at the eleventh hour in June. Dylan and the freeholder subsequently settled on a premium of £5,500 . If he not met the deadline, the figure would have increased by a minimum £1,100.
In 2011 we were e-mailed by Mr R Sánchez who, having bought a basement apartment in Camberwell in September 2004. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar flats in Camberwell with an extended lease were valued around £295,000. The mid-range ground rent payable was £45 invoiced annually. The lease concluded on 17 January 2100. Taking into account 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
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 was in relation to 3 flats. The remaining number of years on the lease was 968 years.