When it comes to long leasehold property in Charlton, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years left. Leasehold owners in Charlton with a lease nearing 81 years left should seriously think of extending it sooner than later. When the lease term has below eighty years remaining, under the current legislation the landlord is entitled to calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Charlton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Charlton valuers.
Evan owned a 2 bedroom flat in Charlton on the market with a lease of just over 72 years remaining. Evan on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Evan to exercise his statutory right. Evan obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2013 we were phoned by Mr and Mrs. B Flores who, having completed a basement flat in Charlton in February 1996. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Charlton with 100 year plus lease were valued around £265,000. The average ground rent payable was £50 billed quarterly. The lease elapsed in 2100. Considering the 74 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
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 related to 2 flats. The unexpired lease term was 72 years.