Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Peckham. Inevitably, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Peckham have the right to extend the lease for an additional ninety years under legislation. Please give due deliberation before delaying your Peckham lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society | |
| Yorkshire Building Society |
Lease extensions in Peckham can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
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 dealing with Peckham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ryan was the the leasehold owner of a 2 bedroom apartment in Peckham being sold with a lease of fraction over 72 years unexpired. Ryan on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Ms S Baker moved into a newly refurbished flat in Peckham in April 2007. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Peckham with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 billed every twelve months. The lease end date was on 1 March 2081. Given that there were 55 years remaining we estimated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.
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 affected 2 flats. The unexpired term as at the valuation date was 80.5 years.