The only way is down when it comes to Streatham lease terms. Streatham flats that have a residual term shorter than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will increase.
Leasehold residencies in Streatham with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 handle Streatham 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 lawyer we work with provide it.
During the course of the last few months Muhammad, started to get close to the eighty-year mark with the lease on his first floor apartment in Streatham. In buying his flat two decades ago, the length of the lease was of little concern. Luckily, he recognised he would soon be paying an escalated premium for a lease extension. Muhammad arranged for a lease extension at the eleventh hour last April. Muhammad and the freeholder in the end settled on sum of £5,500 . If the lease had slipped lower than 80 years, the premium would have gone up by at least £1,075.
Last Winter we were e-mailed by Mr and Mrs. R Edwards , who took over the lease of a first floor flat in Streatham in November 2007. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical homes in Streatham with an extended lease were valued around £245,000. The average ground rent payable was £50 billed annually. The lease elapsed in 2094. Considering the 68 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
An example of a Lease Extension matter before the tribunal for a Streatham flat 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 term was 23.25 years.