New Cross leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in New Cross will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in New Cross with more than one hundred years unexpired on the lease are often referred to as ‘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 buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your New Cross leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Joshua, started to get near to the eighty-year threshold with the lease on his two bedroom flat in New Cross. Having bought his property twenty years ago, the length of the lease was of minimal interest. Fortunately, he realised he needed to take action soon on Extending the lease. Joshua was able to extend his lease at the eleventh hour last July. Joshua and the freeholder via the managing agents ultimately settled on sum of £6,000 . If he not met the deadline, the sum would have become more costly by a minimum £925.
Last year we were approach by Mr and Mrs. J Lambert , who bought a basement flat in New Cross in September 2000. We are asked if we could estimate the price could be for a ninety year lease extension. Identical homes in New Cross with 100 year plus lease were valued around £250,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed on 20 March 2090. Having 64 years unexpired we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including 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 was in relation to 3 flats. The unexpired lease term was 80.01 years.