As the length of the unexpired term of a Streatham domestic lease decreases so does its value and therefore the value of your property. If the residual term has, beyond 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Streatham will meet the qualifying criteria; however a conveyancer will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Streatham with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Halifax | |
| Santander | |
| Yorkshire Building Society |
The lawyers 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 conveyancing solicitor we work with provide it.
18 months ago Lucas, started to get near to the eighty-year mark with the lease on his garden apartment in Streatham. Having purchased his flat two decades ago, the unexpired term was of no bearing. As luck would have it, he realised he needed to take action soon on a lease extension. Lucas was able to extend his lease just under the wire last September. Lucas and the landlord who owned the flat above in the end agreed on sum of £5,000 . If the lease had slipped below 80 years, the amount would have escalated by a minimum £875.
In 2014 we were phoned by Mr D Bonnet who, having bought a basement apartment in Streatham in November 2010. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable properties in Streatham with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 collected monthly. The lease elapsed on 27 March 2085. Given that there were 59 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus costs.
An example of a Lease Extension case for a Streatham premises 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 affected 1 flat. The number of years remaining on the existing lease(s) was 23.25 years.