Unfortunately that a South Lambeth residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the South Lambeth property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. Most flat owners in South Lambeth will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with handle South Lambeth 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 conveyancing solicitor we work with provide it.
Trailing unsuccessful correspondence with the freeholder of her purpose-built apartment in South Lambeth, Leah started the lease extension process as the eighty year deadline was swiftly coming. The transaction completed in June 2006. The landlord’s fees were restricted to slightly above 550 GBP.
Dr Tyler Taylor completed a first floor flat in South Lambeth in June 2003. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical premises in South Lambeth with an extended lease were in the region of £260,000. The average amount of ground rent was £50 collected per annum. The lease expired on 26 October 2098. Considering the 72 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
In 2011 we were e-mailed by Dr Archie Mitchell who, having owned a studio apartment in South Lambeth in June 2001. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Identical flats in South Lambeth with a long lease were worth £261,600. The mid-range ground rent payable was £60 billed per annum. The lease lapsed on 10 May 2078. Considering the 52 years left we estimated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 plus professional charges.