As the the remaining lease term of a New Cross domestic lease lessens so does its value and therefore the value of your property. If the lease has, beyond 99 years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. The majority of flat owners in New Cross will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in New Cross with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Santander |
Retaining our service gives you enhanced control over the value of your New Cross leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a conversion apartment in New Cross being sold with a lease of just over 61 years remaining. Jackson on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were contacted by Mr and Mrs. T Smith who, having was assigned a lease of a one bedroom apartment in New Cross in October 2006. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar flats in New Cross with an extended lease were in the region of £181,600. The average amount of ground rent was £55 invoiced monthly. The lease ended on 11 June 2078. Considering the 52 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a New Cross residence 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 affected 3 flats. The unexpired term as at the valuation date was 80.01 years.