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Top reasons for New Eltham lease extension

Main reasons to start your New Eltham lease extension today:

A New Eltham leasehold property depreciates with the years remaining on the lease.

Chances are that if you own a flat in New Eltham you actually own a long leasehold interest over your property

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.

Mortgage lenders may not grant a mortgage on a short lease

The trend since over the last decade has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. In the past lenders would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
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.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Yorkshire Building Society 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.

What makes us experts in New Eltham lease extensions?

Lease extensions in New Eltham can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.

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 Eltham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

New Eltham Lease Extension Case Studies:

William, New Eltham, South East London,

William owned a conversion apartment in New Eltham on the market with a lease of a few days over sixty years remaining. William informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were William to invoke his statutory right. William obtained expert advice and secured satisfactory deal informally and sell the flat.

New Eltham case:

Last Christmas we were called by Mrs D Smith , who moved into a purpose-built apartment in New Eltham in April 2000. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar flats in New Eltham with a long lease were in the region of £208,600. The average amount of ground rent was £60 billed annually. The lease elapsed in 2082. Taking into account 57 years outstanding we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.

Decision in Greenwich

An example of a Lease Extension matter before the tribunal for a New Eltham property is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.