Downe leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Flat owners in Downe will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold properties in Downe with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Downe,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Downe valuers.
Last October Thomas, came perilously close to the eighty-year mark with the lease on his purpose- built apartment in Downe. In buying his flat 18 years previously, the lease term was of little bearing. Thankfully, he recognised he needed to take action soon on Extending the lease. Thomas was able to extend his lease just in the nick of time in July. Thomas and the landlord in the end agreed on the final figure of £6,000 . If the lease had dipped below 80 years, the figure would have become more costly by at least £950.
In 2012 we were called by Mr and Mrs. J Bennett who, having completed a first floor apartment in Downe in November 1999. We are asked if we could approximate the premium would be to extend the lease by 90 years. Similar residencies in Downe with a long lease were valued around £280,000. The average amount of ground rent was £45 billed per annum. The lease terminated on 22 March 2094. Taking into account 69 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
An example of a Lease Extension decision for a Downe flat is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case was in relation to 1 flat. The unexpired term as at the valuation date was 50.57 years.