The market value of a leasehold property in Peckham depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised in advance of the 80 year cut off point. Leasehold Reform legislation enables Peckham qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Peckham with in excess of one hundred years left on the lease are often regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Santander | |
| Skipton Building Society |
Retaining our service will provide you better control over the value of your Peckham leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Owen, came perilously near to the 80-year mark with the lease on his leasehold flat in Peckham. Having purchased his home 18 years ago, the lease term was of no bearing. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Owen extended the lease just under the wire in May. Owen and the freeholder in the end settled on sum of £5,000 . If he not met the deadline, the premium would have become more exhorbitant by a minimum £1,075.
Mr T Young bought a one bedroom flat in Peckham in June 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Peckham with an extended lease were in the region of £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease ended on 18 March 2104. Taking into account 78 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
An example of a Freehold Enfranchisement decision for a Peckham flat 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 affected 2 flats. The unexpired term was 80.5 years.