Charlton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Charlton tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Charlton you must check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Charlton flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold properties in Charlton with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancers that we work with procure Charlton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
During the course of the last few months Freddie, started to get close to the eighty-year threshold with the lease on his garden flat in Charlton. Having purchased his flat two decades ago, the unexpired term was of minimal interest. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Freddie extended the lease just ahead of time in July. Freddie and the landlord ultimately settled on the final figure of £6,000 . If the lease had gone below eighty years, the sum would have become more costly by a minimum £950.
In 2014 we were e-mailed by Dr B Stewart who, having owned a purpose-built apartment in Charlton in May 2000. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative residencies in Charlton with a long lease were valued around £264,000. The mid-range ground rent payable was £60 collected per annum. The lease terminated on 18 January 2079. Taking into account 53 years left we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 not including fees.
An example of a Lease Extension decision for a Charlton premises 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.