The closer a domestic lease in Lewisham nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Lewisham will qualify for this right; however a conveyancer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Lewisham leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the freeholder of her leasehold flat in Lewisham, Laura initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was finalised in May 2008. The landlord’s fees were kept to an absolute minimum.
In 2012 we were called by Mrs W Davies who, having owned a purpose-built apartment in Lewisham in July 2007. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparative premises in Lewisham with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 billed every twelve months. The lease expired in 2104. Taking into account 80 years left we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
An example of a Lease Extension case 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 related to 2 flats. The remaining number of years on the lease was 72 years.