Chances are that where you own a flat in Eltham you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Eltham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Eltham valuers.
16 months ago Lucas, came perilously close to the eighty-year mark with the lease on his leasehold apartment in Eltham. In buying his flat twenty years ago, the length of the lease was of little significance. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Lucas extended the lease just in the nick of time in April. Lucas and the freeholder via the management company ultimately agreed on sum of £5,000 . If the lease had fallen below eighty years, the premium would have escalated by at least £1,100.
Last Summer we were e-mailed by Mr and Mrs. S Reed , who owned a studio flat in Eltham in February 1995. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative homes in Eltham with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed in 2079. Taking into account 54 years as a residual term we estimated the premium to the landlord for the lease extension to be between £34,200 and £39,600 plus legals.
An example of a Lease Extension decision for a Eltham property is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case was in relation to 1 flat.