Lewisham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Lewisham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Lewisham you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Lewisham with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB | |
| Virgin |
Lease extensions in Lewisham can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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 procuring Lewisham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the landlord of her purpose-built apartment in Lewisham, Jessica commenced the lease extension process as the eighty year mark was rapidly advancing. The lease extension completed in February 2008. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. A Bonnet acquired a one bedroom apartment in Lewisham in April 2003. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Similar residencies in Lewisham with an extended lease were valued about £295,000. The mid-range ground rent payable was £50 collected annually. The lease ran out in 2101. Given that there were 75 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
An example of a Lease Extension case for a Lewisham flat 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 remaining number of years on the lease was 72 years.