Why you should commence your New Cross lease extension
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Main reasons to commence your New Cross lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/new-cross">New Cross</a> lease depreciates with the years remaining on the lease.
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<p> The re-sale value of a leasehold property in New Cross depends on how long the lease has left to run. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years remaining so that all matters can be finalised ahead of the eighty year cut off point. Leasehold Reform legislation enables New Cross qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension. <h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold premises in New Cross with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges merit it. <h4>Lenders may not finance a property on a short lease</h4> Banks and building societies are making their criteria more stringent and a meaningful number now expect flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Given that many flats in New Cross were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.
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<th> Requirement
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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Why use us for your lease extension in New Cross? </h4>
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The conveyancing solicitors that we work with procure New Cross lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
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New Cross Lease Extension Example Cases:
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<h5> Andrew, New Cross, South East London</h5>
<p> 16 months ago Andrew, came seriously close to the eighty-year mark 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 little concern. Luckily, he noticed he needed to take action soon on Extending the lease. Andrew arranged for a lease extension just under the wire last January. Andrew and the landlord ultimately agreed on a premium of £5,000 . If the lease had dipped below eighty years, the price would have become more costly by at least £925.
<h5>New Cross case:</h5>
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In 2010 we were called by Dr Gabriel Dupont who, having took over the lease of a studio flat in New Cross in February 2011. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical premises in New Cross with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 billed quarterly. The lease terminated in 2080. Given that there were 54 years left we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of costs.
<div> <h5>Decision in Lewisham</h5>
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An example of a Freehold Enfranchisement case 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 related to 3 flats. The unexpired lease term was 80.01 years.
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