The only way is down when it comes to Peckham lease terms. Peckham flats that have a residual term fewer than 80 years will reduce in market price even faster, and the cost of extending your lease will go up.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Peckham 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 conveyancer we work with provide it.
Following unsuccessful discussions with the freeholder of her purpose-built apartment in Peckham, Eleanor initiated the lease extension process as the 80 year threshold was swiftly advancing. The legal work was concluded in February 2013. The landlord’s costs were negotiated to less than 600 pounds.
Mr and Mrs. J Richardson was assigned a lease of a one bedroom apartment in Peckham in May 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Similar flats in Peckham with a long lease were valued about £240,600. The average ground rent payable was £60 billed every twelve months. The lease elapsed in 2088. Considering the 62 years left we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus legals.
An example of a Freehold Enfranchisement case for a Peckham premises 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 was in relation to 2 flats. The unexpired term was 80.5 years.