With a long leasehold premises in Erith, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Anyone in Erith with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has below eighty years outstanding, under the current legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Erith with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| 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:
|
| 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. |
Irrespective of whether you are a tenant or a landlord in Erith,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Erith valuers.
Half a year ago Eliot, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Erith. In buying his flat two decades ago, the unexpired term was of minimal relevance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Eliot was able to extend his lease at the eleventh hour last January. Eliot and the freeholder via the managing agents eventually settled on an amount of £5,500 . If he not met the deadline, the price would have increased by a minimum £1,075.
Mr and Mrs. M Miller took over the lease of a one bedroom flat in Erith in February 1998. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparable homes in Erith with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 invoiced per annum. The lease expiry date was in 2077. Considering the 51 years remaining we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including expenses.
An example of a Lease Extension matter before the tribunal for a Erith property is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case related to 13 flats. The unexpired term was 76 years.