There is no doubt about it a leasehold property in Mottingham is a wasting asset as a result of the shortening lease. If the lease has, over one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Mottingham will qualify for this right; nevertheless a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Mottingham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mottingham valuers.
In 2014 Jude, came dangerously near to the eighty-year threshold with the lease on his ground floor apartment in Mottingham. In buying his flat 19 years ago, the unexpired term was of no bearing. Luckily, he realised he needed to take action soon on a lease extension. Jude extended the lease just under the wire last April. Jude and the landlord subsequently settled on a premium of £5,500 . If the lease had dipped lower than eighty years, the figure would have become more costly by at least £1,050.
Ms S Murphy took over the lease of a first floor flat in Mottingham in July 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Mottingham with a long lease were valued about £243,000. The average amount of ground rent was £65 collected monthly. The lease finished on 3 February 2088. Given that there were 63 years left we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including fees.
An example of a Lease Extension decision for a Mottingham flat is 49 Woodstock Court Burnt Ash Hill in May 2012. the payment of £64,116 by the leaseholder was the premium which the Tribunal found due for the lease extension in this case. This case was in relation to 1 flat. The unexpired term was 23.26 years.