With a long leasehold premises in Streatham Vale, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Leasehold owners in Streatham Vale with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has less than 80 years remaining, under the relevant Act the freeholder can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Streatham Vale,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Streatham Vale valuers.
Riley was the the leasehold owner of a studio flat in Streatham Vale being sold with a lease of just over 72 years remaining. Riley informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to exercise his statutory right. Riley obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Dr L Rodríguez purchased a studio apartment in Streatham Vale in February 2000. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical properties in Streatham Vale with a long lease were worth £275,000. The average ground rent payable was £45 collected quarterly. The lease expired in 2095. Given that there were 69 years unexpired we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
In 2014 we were contacted by Dr Leon Wood who, having acquired a purpose-built flat in Streatham Vale in September 2009. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Streatham Vale with 100 year plus lease were worth £216,000. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out in 2084. Having 58 years remaining we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus costs.