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Main reasons to commence your Charlton lease extension

Why you should start your Charlton lease extension today:

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

It’s a harsh certainty that a Charlton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Charlton property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Charlton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.

Charlton property with a lease extension has roughly the same value as a freehold

Leasehold premises in Charlton with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions will not lend on a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now want flats to have at least sixty if not seventy years left at the expiry of the mortgage. Given that many flats in Charlton were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to get a mortgage.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
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.
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.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Why use us for your lease extension in Charlton?

Lease extensions in Charlton can be a difficult process. We recommend you get professional help from a conveyancer 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 procuring 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:

Ryan, Charlton, South East London

Last year Ryan, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Charlton. In buying his home two decades ago, the lease term was of minimal importance. Luckily, it dawned on him that he would soon be paying an escalated premium for a lease extension. Ryan arranged for a lease extension at the eleventh hour in January. Ryan and the freeholder subsequently settled on the final figure of £6,000 . If he had missed the deadline, the premium would have escalated by a minimum £850.

Charlton case:

Last month we were called by Dr S Parker , who bought a one bedroom flat in Charlton in July 2004. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative premises in Charlton with an extended lease were worth £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease lapsed in 2075. Taking into account 51 years remaining we estimated the premium to the landlord for the lease extension to be within £43,700 and £50,600 not including professional charges.

Decision in Lewisham

An example of a Lease Extension case for a Charlton residence 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 unexpired term was 72 years.