Hither Green leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Hither Green enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hither Green you should check if your lease has between 70 and ninety years left. There are good reasons why a Hither Green flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is put in place without delay
Leasehold residencies in Hither Green with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Hither Green,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hither Green valuers.
Andrew was the the leasehold owner of a studio flat in Hither Green being marketed with a lease of fraction over sixty years unexpired. Andrew on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert advice and secured an acceptable deal informally and readily saleable.
In 2009 we were contacted by Mr Archie Laurent who, having bought a basement flat in Hither Green in August 2004. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical premises in Hither Green with a long lease were worth £250,000. The average ground rent payable was £50 billed monthly. The lease lapsed in 2095. Having 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Hither Green residence 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 related to 3 flats. The unexpired residue of the current lease was 69.05 years.