With a long leasehold property in Charlton, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years left. Anyone in Charlton with a lease approaching 81 years remaining should seriously consider extending it sooner than later. Once the lease term has below eighty years left, under the current statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective 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 experience and the close ties they enjoy with Charlton valuers.
Owen was the the leasehold owner of a 2 bedroom flat in Charlton on the market with a lease of a few days over 59 years remaining. Owen informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Ms Eleanor Murphy owned a purpose-built apartment in Charlton in August 2008. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Charlton with a long lease were valued about £270,000. The mid-range ground rent payable was £55 billed yearly. The lease terminated on 18 March 2101. Taking into account 75 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
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 as at the valuation date was 72 years.