As the the remaining lease term of a Lambeth residential lease diminished so does its value and therefore the value of your property. If the residual term has, more than 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Lambeth will qualify for this right; that being said a conveyancer can advise 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.
Leasehold residencies in Lambeth with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Engaging our service gives you better control over the value of your Lambeth leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Aaron, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Lambeth. Having purchased his property twenty years previously, the lease term was of minimal concern. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. Aaron arranged for a lease extension just ahead of time last September. Aaron and the landlord subsequently settled on a premium of £5,500 . If he not met the deadline, the figure would have escalated by at least £1,125.
Last June we were contacted by Mr R Lewis , who bought a purpose-built apartment in Lambeth in November 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in Lambeth with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 billed quarterly. The lease finished in 2096. Given that there were 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
An example of a Lease Extension decision for a Lambeth flat 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 related to 2 flats. The number of years remaining on the existing lease(s) was 56 years.