Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in New Cross. Clearly, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the residence needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in New Cross have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Do give due attention before delaying your New Cross lease extension. Holding off the cost now only increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in New Cross can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring New Cross lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Owen, came critically near to the eighty-year threshold with the lease on his leasehold flat in New Cross. Having bought his home 18 years ago, the length of the lease was of minimal relevance. by good luck, he recognised he would soon be paying way over the odds for Extending the lease. Owen extended the lease just under the wire in September. Owen and the freeholder via the managing agents subsequently settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have become more costly by a minimum £1,100.
Dr N Robinson was assigned a lease of a ground floor apartment in New Cross in July 1995. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparative premises in New Cross with an extended lease were worth £280,000. The mid-range ground rent payable was £45 collected per annum. The lease end date was in 2094. Given that there were 69 years outstanding we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.
An example of a Freehold Enfranchisement decision 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.