The closer a residential lease in Streatham gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 100 years to run then this decrease may be of little impact however 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 increase sharply the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Streatham will qualify for this right; nevertheless a conveyancer will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| 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. |
Using our service will provide you enhanced control over the value of your Streatham leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Joshua was the the leasehold owner of a high value flat in Streatham on the market with a lease of fraction over fifty eight years remaining. Joshua informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and secured satisfactory resolution informally and sell the flat.
Last Spring we were e-mailed by Mr and Mrs. N Jackson , who bought a recently refurbished apartment in Streatham in February 2006. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparable flats in Streatham with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease came to a finish in 2082. Having 56 years remaining we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Streatham residence 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 unexpired term was 23.25 years.