Unfortunately that a Lewisham residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Lewisham property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term drops below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Lewisham will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Lewisham with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
The lawyers that we work with procure Lewisham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Ben, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Lewisham. Having purchased his flat twenty years ago, the lease term was of minimal concern. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Ben extended the lease just ahead of time last June. Ben and the landlord subsequently agreed on a premium of £5,500 . If he not met the deadline, the premium would have increased by a minimum £925.
Last October we were e-mailed by Mr D Davis , who completed a purpose-built apartment in Lewisham in September 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Lewisham with an extended lease were in the region of £200,000. The average ground rent payable was £50 invoiced monthly. The lease terminated in 2103. Given that there were 77 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
An example of a Lease Extension matter before the tribunal for a Lewisham residence 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 number of years remaining on the existing lease(s) was 72 years.