Charlton leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Flat owners in Charlton will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Charlton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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 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.
Hunter was the the leasehold owner of a studio apartment in Charlton being sold with a lease of fraction over fifty eight years unexpired. Hunter on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hunter to exercise his statutory right. Hunter procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr J Patel purchased a basement apartment in Charlton in May 2012. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Charlton with an extended lease were valued about £166,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease termination date was on 13 July 2079. Given that there were 54 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including 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 number of years remaining on the existing lease(s) was 72 years.