As the the remaining lease term of a Lewisham domestic lease decreases so does its value and therefore the value of your property. If the residual term has, beyond 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Lewisham will meet the qualifying criteria; that being said a conveyancer should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Halifax | |
| TSB | |
| Royal Bank of Scotland |
Lease extensions in Lewisham can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
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 in-depth market knowledge dealing with Lewisham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Kyle, came critically near to the 80-year mark with the lease on his studio apartment in Lewisham. In buying his flat two decades ago, the lease term was of minimal concern. Luckily, he became aware that he would imminently be paying an inflated amount for a lease extension. Kyle was able to extend his lease just under the wire last May. Kyle and the freeholder via the managing agents in the end agreed on an amount of £6,000 . If the lease had gone lower than 80 years, the premium would have gone up by at least £925.
In 2010 we were approached by Mr and Mrs. O White who, having owned a garden flat in Lewisham in November 2007. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparable residencies in Lewisham with a long lease were in the region of £223,400. The mid-range ground rent payable was £60 billed monthly. The lease finished on 5 October 2085. Considering the 59 years left we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus professional charges.
An example of a Lease Extension decision for a Lewisham premises is 73 Walerand Road in August 2012. the result of the findings of the Tribunal led to a premium to be paid for the extended lease in respect of Flat 73 in the sum of £10,040. The premium applicable in respect of Flat 85 was £5,710. This case affected 2 flats. The unexpired term as at the valuation date was 72 years.