When it comes to residential leasehold premises in Honor Oak, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Anyone in Honor Oak with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. Once the lease term has below 80 years left, under the current statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Honor Oak with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Honor Oak can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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.
Zachary owned a studio flat in Honor Oak being marketed with a lease of a little over sixty years unexpired. Zachary informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Zachary to invoke his statutory right. Zachary procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Christmas we were contacted by Mrs Leah Alexander , who completed a basement apartment in Honor Oak in August 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Honor Oak with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 invoiced monthly. The lease finished on 21 March 2090. Given that there were 64 years remaining we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Honor Oak flat 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 was in relation to 1 flat. The remaining number of years on the lease was 61.81 years.