Honor Oak leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Honor Oak will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Honor Oak with over one hundred years remaining on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Honor Oak can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Honor Oak lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sam was the the leasehold proprietor of a conversion apartment in Honor Oak on the market with a lease of just over fifty eight years unexpired. Sam on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sam to exercise his statutory right. Sam procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
In 2009 we were phoned by Mr and Mrs. U King who, having bought a ground floor apartment in Honor Oak in February 2005. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable flats in Honor Oak with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded on 1 July 2103. Considering the 78 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
An example of a Lease Extension case for a Honor Oak residence is Flat 1 40-42 Ewelme Road in August 2012. the Tribunal assessed the premium for the lease extension in the sum of £11,800 This case related to 1 flat. The remaining number of years on the lease was 61.81 years.