The value of Lewisham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is below than eighty years
Leasehold residencies in Lewisham with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Lewisham can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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.
In 2014 Kian, came critically near to the 80-year threshold with the lease on his first floor apartment in Lewisham. In buying his home two decades ago, the length of the lease was of little importance. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Kian was able to extend his lease just ahead of time last September. Kian and the freeholder subsequently agreed on an amount of £6,000 . If the lease had slipped to less than eighty years, the sum would have escalated by at least £1,150.
Last November we were approach by Dr Georgina Díaz , who owned a studio flat in Lewisham in August 1995. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical homes in Lewisham with 100 year plus lease were worth £184,000. The average ground rent payable was £55 collected monthly. The lease ran out on 24 November 2078. Given that there were 53 years remaining we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
An example of a Lease Extension decision for a Lewisham property 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 unexpired term was 72 years.