There is no doubt about it a leasehold property in Honor Oak is a wasting asset as a result of the shortening lease. If the lease has, in excess of 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner than later. Many flat owners in Honor Oak will qualify for this right; however a lawyer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Honor Oak with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Honor Oak leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad was the the leasehold owner of a 2 bedroom flat in Honor Oak on the market with a lease of just over fifty eight years remaining. Muhammad informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert advice and secured satisfactory deal informally and readily saleable.
Last month we were e-mailed by Mr and Mrs. P Brown , who owned a purpose-built apartment in Honor Oak in May 2004. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar flats in Honor Oak with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease ended on 6 June 2100. Taking into account 75 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
An example of a Lease Extension decision for a Honor Oak property 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 unexpired residue of the current lease was 61.81 years.