It’s an underpublicised certainty that a Hither Green residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Hither Green property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Hither Green will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold residencies in Hither Green with over one hundred years remaining 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 situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
Lease extensions in Hither Green can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hither Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Daniel, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Hither Green. In buying his flat twenty years previously, the length of the lease was of no concern. by good luck, he recognised he needed to take action soon on a lease extension. Daniel was able to extend his lease just under the wire last June. Daniel and the freeholder ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have escalated by at least £1,125.
In 2014 we were approached by Dr Alfie François who, having bought a one bedroom flat in Hither Green in August 1999. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar residencies in Hither Green with an extended lease were valued around £183,600. The average amount of ground rent was £65 collected annually. The lease terminated in 2083. Taking into account 57 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Hither Green premises 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 was in relation to 3 flats. The unexpired term as at the valuation date was 69.05 years.