Peckham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Peckham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Peckham you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Peckham leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Peckham with more than 100 years outstanding on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Peckham can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 in-depth market knowledge procuring Peckham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Gabriel, started to get close to the eighty-year mark with the lease on his garden flat in Peckham. Having bought his property two decades ago, the lease term was of no interest. Luckily, he became aware that he needed to take action soon on a lease extension. Gabriel extended the lease just ahead of time last April. Gabriel and the landlord ultimately agreed on the final figure of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £925.
Last February we were contacted by Mr and Mrs. O Smith , who was assigned a lease of a garden apartment in Peckham in July 2007. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical properties in Peckham with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 invoiced monthly. The lease concluded on 3 May 2089. Considering the 63 years remaining we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Peckham residence is 31 Kings Grove in January 2012. By a claim form issued on 11" August 2011 under action number 1LB01618 in the Lambeth County Court the applicant tenants sought dispensation under section 26 of the Leasehold Reform, Housing and Urban Development Act 1993 from the requirement to serve a notice under section 13 of that Act in order to purchase the freehold of the premises. The Tribunal decided the amount payable for the freehold as £10,728 This case related to 2 flats. The number of years remaining on the existing lease(s) was 80.5 years.