Stop! Your Lease Extension in Charlton Could Be FREE

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Many leaseholders in Charlton are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Charlton has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should commence your Charlton lease extension

Top reasons for lease extension now:

A Charlton leasehold property depreciates with the years remaining on the lease.

Charlton residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.

Charlton property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not finance a property on a short lease

The propensity since 2008 has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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 are not acceptable.

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.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years.

What makes us experts in Charlton lease extensions?

Lease extensions in Charlton can be a difficult process. We recommend you get 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 in-depth market knowledge dealing with Charlton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Charlton Lease Extension Example Cases:

Ibrahim, Charlton, South East London

Last year Ibrahim, started to get near to the eighty-year mark with the lease on his garden flat in Charlton. In buying his property 18 years previously, the unexpired term was of minimal importance. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. Ibrahim arranged for a lease extension at the eleventh hour in September. Ibrahim and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £1,000.

Charlton case:

In 2012 we were contacted by Mr and Mrs. W Bennett who, having purchased a garden flat in Charlton in November 2011. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable properties in Charlton with 100 year plus lease were in the region of £256,600. The mid-range ground rent payable was £60 invoiced annually. The lease lapsed in 2078. Considering the 52 years outstanding we approximated the premium to the landlord for the lease extension to be between £41,800 and £48,400 not including professional charges.

Decision in Lewisham

An example of a Lease Extension matter before the tribunal for a Charlton flat 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 was in relation to 2 flats. The remaining number of years on the lease was 72 years.