For anyone whose New Cross home is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Santander | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
Using our service gives you enhanced control over the value of your New Cross leasehold, as your property will be more valuable and marketable in respect of lease length should you want 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.
Alex was the the leasehold owner of a 2 bedroom flat in New Cross on the market with a lease of just over sixty years unexpired. Alex informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Alex to exercise his statutory right. Alex obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Mr and Mrs. D Clark purchased a basement apartment in New Cross in March 1997. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in New Cross with an extended lease were worth £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease expiry date was on 14 June 2101. Given that there were 75 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
An example of a Freehold Enfranchisement decision for a New Cross premises 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 residue of the current lease was 80.01 years.