Chances are that where you own a flat in Greenwich you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Irrespective of whether you are a tenant or a landlord in Greenwich,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Greenwich valuers.
Last Spring Cameron, started to get near to the eighty-year threshold with the lease on his garden flat in Greenwich. Having purchased his flat twenty years ago, the length of the lease was of little significance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Cameron was able to extend his lease just under the wire last January. Cameron and the freeholder subsequently agreed on sum of £5,500 . If he had missed the deadline, the amount would have increased by a minimum £1,050.
In 2009 we were approached by Dr L Bertrand who, having took over the lease of a garden flat in Greenwich in February 2002. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative homes in Greenwich with a long lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded in 2095. Having 70 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
An example of a Lease Extension case for a Greenwich property is 73 Walerand Road in August 2012. the result of the findings of the Tribunal led to a premium to be paid for the extended lease in respect of Flat 73 in the sum of £10,040. The premium applicable in respect of Flat 85 was £5,710. This case related to 2 flats. The unexpired term was 72 years.