Slade Green leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Slade Green will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some cases you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Slade Green leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Adam, came dangerously close to the 80-year mark with the lease on his first floor apartment in Slade Green. Having purchased his property twenty years ago, the length of the lease was of minimal importance. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Adam arranged for a lease extension at the eleventh hour in June. Adam and the landlord who owned the flat above in the end settled on an amount of £5,500 . If the lease had descended to less than 80 years, the premium would have become more exhorbitant by a minimum £850.
In 2013 we were contacted by Dr I Moore who, having acquired a one bedroom apartment in Slade Green in February 2000. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparable flats in Slade Green with a long lease were in the region of £223,400. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed on 4 February 2084. Considering the 59 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Slade Green property is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case related to 13 flats. The unexpired residue of the current lease was 76 years.