Chances are that if you own a flat in Peckham you actually own a long leasehold interest over your property
Leasehold residencies in Peckham with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Peckham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Peckham valuers.
Arthur was the the leasehold owner of a conversion flat in Peckham being marketed with a lease of a little over 72 years remaining. Arthur informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Arthur to invoke his statutory right. Arthur procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were phoned by Dr M Jackson who, having completed a ground floor flat in Peckham in March 2011. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative flats in Peckham with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed yearly. The lease concluded in 2104. Given that there were 79 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
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 was in relation to 2 flats. The unexpired term was 80.5 years.