With a long leasehold property in Charing Cross, you effectively rent it for a certain amount of time. In recent years 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 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 eighty years remaining. Residents in Charing Cross with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. When the lease term has fewer than 80 years remaining, under the current legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Charing Cross with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Charing Cross can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Charing Cross lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the freeholder of her leasehold flat in Charing Cross, Niamh started the lease extension process as the eighty year threshold was rapidly approaching. The lease extension was concluded in June 2012. The landlord’s costs were kept to an absolute minimum.
In 2014 we were contacted by Ms Sophia Cox who, having acquired a purpose-built apartment in Charing Cross in March 1998. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical residencies in Charing Cross with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected annually. The lease finished in 2098. Taking into account 72 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
An example of a Freehold Enfranchisement decision for a Charing Cross property is 20 Avonwick Road in July 2013. The Tribunal was dealing with an application under Section 26 of the Leasehold Reform Housing and Urban Development Act 1993 for a determination of the freehold value of the property. It was concluded that the price to be paid was Fifteen Thousand Nine Hundred and Seventy (£15,970) divided as to £8,200 for Flat 20 and £7,770 for Flat 20A This case affected 1 flat. The number of years remaining on the existing lease(s) was 73.26 years.