On the balance of probabilities if you own a flat in Charlton you actually own a long leasehold interest over your property
Leasehold residencies in Charlton with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Charlton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Leon owned a 2 bedroom apartment in Charlton being sold with a lease of fraction over 59 years remaining. Leon on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr U Allen was assigned a lease of a one bedroom flat in Charlton in October 1997. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparative homes in Charlton with an extended lease were valued about £176,200. The mid-range amount of ground rent was £65 invoiced annually. The lease expired on 7 April 2081. Having 56 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Charlton property is 73 Walerand Road in August 2012. the result of the findings of the Tribunal led to a premium to be paid for the extended lease in respect of Flat 73 in the sum of £10,040. The premium applicable in respect of Flat 85 was £5,710. This case affected 2 flats. The unexpired term was 72 years.