Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Charlton. Clearly, the period of lease remaining shortens over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying leaseholders in Charlton have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful deliberation before delaying your Charlton lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Charlton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her purpose-built apartment in Charlton, Daisy started the lease extension process just as her lease was nearing the all-important eighty-year deadline. The transaction was finalised in November 2005. The landlord’s fees were kept to an absolute minimum.
In 2011 we were approached by Mrs Kate Ward who, having owned a one bedroom apartment in Charlton in May 1998. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar residencies in Charlton with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 invoiced per annum. The lease concluded on 16 June 2092. Considering the 66 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
An example of a Lease Extension case for a Charlton flat 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.