There is no doubt about it a leasehold flat or house in Lambeth is a wasting asset as a result of the shortening lease. If the lease has, beyond 125 years to run then this decrease may be of little impact however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Lambeth will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Skipton Building Society |
The lawyers that we work with undertake Lambeth 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 lawyer we work with provide it.
Blake owned a high value flat in Lambeth being sold with a lease of just over 59 years outstanding. Blake informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr and Mrs. U Vincent purchased a ground floor apartment in Lambeth in June 2007. We are asked if we could estimate the price would be to prolong the lease by ninety years. Similar properties in Lambeth with an extended lease were in the region of £240,600. The average amount of ground rent was £60 collected per annum. The lease elapsed on 25 May 2088. Taking into account 62 years outstanding we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.
An example of a Lease Extension matter before the tribunal for a Lambeth property is Flats 12A & 19, Evelyn Mansions Carlisle Place in June 2009. The Tribunal held that the price to be paid for the new lease of Flat 12A is £168,824, For the other flat the price was set at £169,110 This case affected 2 flats. The remaining number of years on the lease was 56 years.