With a domestic leasehold premises in New Eltham, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Residents in New Eltham with a lease nearing 81 years remaining should seriously think of extending it sooner than later. Once the lease term has fewer than 80 years left, under the current statute the landlord can calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in New Eltham with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges merit it.
| 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. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your New Eltham leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Stanley owned a conversion apartment in New Eltham being marketed with a lease of a few days over sixty years left. Stanley informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Stanley to invoke his statutory right. Stanley procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Mr and Mrs. F Michel owned a one bedroom flat in New Eltham in November 2001. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar residencies in New Eltham with a long lease were worth £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease came to a finish in 2104. Considering the 78 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension case for a New Eltham residence 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.