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 becomes more expensive. It is the case that most Lewisham tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Lewisham you really ought to check if your lease has between seventy and 90 years remaining. There are good reasons why a Lewisham flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Lewisham with over 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Lewisham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lewisham valuers.
Evan was the the leasehold owner of a 2 bedroom flat in Lewisham on the market with a lease of fraction over sixty years unexpired. Evan informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2011 we were phoned by Mrs Katherine Howard who, having acquired a basement apartment in Lewisham in May 2006. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Lewisham with a long lease were worth £205,000. The average amount of ground rent was £50 billed monthly. The lease end date was in 2104. Taking into account 79 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
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 affected 2 flats. The unexpired residue of the current lease was 72 years.