As the the remaining lease term of a New Cross domestic lease diminished so does its value and therefore the value of your property. If the lease has, over 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in New Cross will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in New Cross with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake New Cross 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.
During the course of the last few months Jackson, started to get near to the eighty-year mark with the lease on his studio flat in New Cross. Having purchased his home twenty years previously, the lease term was of minimal relevance. Fortunately, he recognised he would imminently be paying an inflated amount for Extending the lease. Jackson arranged for a lease extension just ahead of time last August. Jackson and the landlord ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the figure would have become more exhorbitant by at least £875.
In 2009 we were e-mailed by Ms O King who, having was assigned a lease of a one bedroom flat in New Cross in August 1996. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable properties in New Cross with an extended lease were worth £223,400. The average amount of ground rent was £60 collected quarterly. The lease end date was on 15 January 2085. Taking into account 59 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a New Cross property is 41 Endwell Road in March 2013. this matter relateed to the acquisition of the freehold of a mid- terraced Victorian house converted into three separate self-contained dwellings. By an order dated 28/11/2012, Deputy District Judge Cole in the Bromley County Court held that the leaseholders were entitled to acquire the freehold and directed that the premium payable be determined by this Tribunal. The Tribunal assessed the premium to be £14,753 This case related to 3 flats. The unexpired term was 80.01 years.