The only way is down when it comes to South Lambeth lease terms. South Lambeth flats that have a remaining term less than than eighty years will drop in market price even faster, and the cost to extend your lease will go up.
Leasehold residencies in South Lambeth with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 conveyancers that we work with procure 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 conveyancer we work with provide it.
Subsequent to lengthy discussions with the freeholder of her one bedroom apartment in South Lambeth, Georgina commenced the lease extension process as the 80 year deadline was fast nearing. The transaction was concluded in January 2005. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Mrs A Stewart , who completed a basement apartment in South Lambeth in April 2001. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable flats in South Lambeth with an extended lease were valued about £265,000. The mid-range amount of ground rent was £50 collected annually. The lease came to a finish on 23 October 2099. Taking into account 73 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last Spring we were e-mailed by Ms Ellen Bell , who moved into a ground floor apartment in South Lambeth in November 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable residencies in South Lambeth with an extended lease were valued about £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated on 19 February 2079. Having 53 years outstanding we approximated the premium to the landlord to extend the lease to be between £37,100 and £42,800 not including professional charges.