Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Streatham. Inevitably, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Streatham have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful attention before delaying your Streatham 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 more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
|Bank of Scotland||Minimum 70 years from the date of the mortgage.|
|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.|
|Godiva Mortgages||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.|
|Lloyds TSB Scotland||Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Using our service will provide you better control over the value of your Streatham leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Alex, came seriously near to the 80-year mark with the lease on his basement apartment in Streatham. Having purchased his flat two decades ago, the unexpired term was of no significance. Fortunately, he realised he would imminently be paying way over the odds for Extending the lease. Alex arranged for a lease extension just in the nick of time in May. Alex and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If the lease had dropped to less than eighty years, the amount would have gone up by at least £1,075.
In 2011 we were called by Mr and Mrs. N François who, having bought a basement apartment in Streatham in January 2009. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable flats in Streatham with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected every twelve months. The lease end date was in 2091. Having 69 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
An example of a Lease Extension case for a Streatham property is Flat 12, Newlands Court Streatham Common North in May 2012. the decision of the Tribunal was that the premium payable by the Applicants to the Respondent for the new lease of the Premises be £70,140. This case was in relation to 1 flat. The unexpired residue of the current lease was 23.25 years.