Chances are that where you own a flat in Eltham you actually own a long leasehold interest over your property
Leasehold properties in Eltham with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 handle Eltham 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 conveyancer we work with provide it.
Rory owned a studio apartment in Eltham on the market with a lease of a few days over 72 years outstanding. Rory informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Rory to invoke his statutory right. Rory procured expert advice and secured satisfactory deal informally and sell the property.
In 2009 we were called by Ms Jasmine Davies who, having took over the lease of a garden flat in Eltham in September 2003. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable properties in Eltham with an extended lease were in the region of £205,000. The average ground rent payable was £50 billed monthly. The lease lapsed in 2103. Taking into account 78 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
An example of a Lease Extension decision for a Eltham premises 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 affected 1 flat.