With a residential leasehold premises in Hither Green, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are less than 80 years remaining. Residents in Hither Green with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has under 80 years remaining, under the current legislation the freeholder can calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Hither Green with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Hither Green leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her ground floor flat in Hither Green, Shannon commenced the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was concluded in July 2009. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were approached by Dr Connor Reed who, having purchased a recently refurbished flat in Hither Green in October 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Hither Green with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease came to a finish on 3 August 2105. Taking into account 80 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
An example of a Freehold Enfranchisement decision for a Hither Green flat is 18 Handen Road in April 2013. On 26 October 2012 District Judge Zimmels sitting at the Lambeth County Court made a Vesting Order that the Applicants be granted the right to acquire the freehold upon such terms and at such price determined by the LVT. The Tribunal arrived a figure of £39,535 as a valuation for the enfranchisement. This case affected 3 flats. The unexpired residue of the current lease was 69.05 years.