Copse Hill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Copse Hill enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Copse Hill you must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Copse Hill can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Copse Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas owned a 2 bedroom flat in Copse Hill on the market with a lease of just over 61 years outstanding. Lucas informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Lucas to exercise his statutory right. Lucas procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2010 we were called by Ms Jordan Brooks who, having acquired a one bedroom apartment in Copse Hill in February 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Copse Hill with an extended lease were valued about £193,400. The mid-range ground rent payable was £65 invoiced yearly. The lease elapsed on 25 July 2084. Having 59 years as a residual term we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
An example of a Lease Extension decision for a Copse Hill property is 83 Balvernie Grove in February 2012. The Tribunal assessed the price to be paid by the leaseholder to the freeholder for the lease extension pursuant to section 48 of the Leasehold Reform Housing & Urban Development Act 1993 should be£16,603.00 This case related to 1 flat. The unexpired residue of the current lease was 69.32 years.