New Cross leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in New Cross enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in New Cross you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in New Cross,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Cross valuers.
Harrison was the the leasehold proprietor of a 2 bedroom apartment in New Cross being sold with a lease of just over 59 years unexpired. Harrison informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2011 we were phoned by Dr Anna Ali who, having was assigned a lease of a basement apartment in New Cross in February 1998. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in New Cross with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected yearly. The lease lapsed on 19 October 2098. Taking into account 73 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 3 flats. The unexpired lease term was 80.01 years.