New Eltham leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher premium will be payable. Flat owners in New Eltham will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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 |
Lease extensions in New Eltham can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 Eltham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the freeholder of her first floor flat in New Eltham, Ellie commenced the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in March 2005. The landlord’s fees were restricted to slightly above 450 pounds.
In 2013 we were phoned by Mrs Georgia Thompson who, having bought a purpose-built apartment in New Eltham in October 2007. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparative properties in New Eltham with an extended lease were worth £240,600. The average ground rent payable was £60 invoiced quarterly. The lease came to a finish in 2088. Given that there were 62 years left we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including legals.
An example of a Lease Extension case for a New Eltham premises 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 related to 1 flat.