The closer a domestic lease in Erith gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 100 years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Erith will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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 procure Erith 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.
Half a year ago Ali, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Erith. Having purchased his property twenty years ago, the lease term was of little importance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Ali was able to extend his lease just under the wire last July. Ali and the freeholder subsequently settled on a premium of £5,500 . If the lease had dipped lower than eighty years, the sum would have increased by a minimum £1,050.
In 2010 we were called by Dr V Campbell who, having completed a purpose-built apartment in Erith in September 2003. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Erith with 100 year plus lease were valued about £210,600. The average ground rent payable was £45 invoiced per annum. The lease expired in 2087. Given that there were 62 years left we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including fees.
An example of a Lease Extension case for a Erith flat 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 was in relation to 13 flats. The number of years remaining on the existing lease(s) was 76 years.