Unfortunately that a Streatham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Streatham property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be due. Most flat owners in Streatham will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works |
The conveyancers that we work with procure 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 conveyancer we work with provide it.
During the course of the last few months Stanley, came critically close to the eighty-year mark with the lease on his garden flat in Streatham. In buying his property twenty years ago, the unexpired term was of minimal concern. by good luck, it dawned on him that he needed to take action soon on a lease extension. Stanley extended the lease just under the wire last August. Stanley and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If the lease had descended to less than 80 years, the price would have gone up by at least £850.
In 2009 we were phoned by Dr Amelia Morris who, having moved into a purpose-built apartment in Streatham in September 1999. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable flats in Streatham with a long lease were worth £242,600. The mid-range ground rent payable was £45 billed monthly. The lease elapsed on 21 July 2093. Having 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including fees.
An example of a Lease Extension matter before the tribunal 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 remaining number of years on the lease was 23.25 years.