With a long leasehold premises in Honor Oak, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Honor Oak with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years outstanding, under the relevant legislation the freeholder can calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Honor Oak with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
Retaining our service gives you increased 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Austin owned a high value apartment in Honor Oak on the market with a lease of a few days over 59 years remaining. Austin on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Austin to invoke his statutory right. Austin obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Dr B Anderson purchased a garden flat in Honor Oak in October 2003. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparable premises in Honor Oak with a long lease were worth £243,000. The mid-range amount of ground rent was £65 billed monthly. The lease came to a finish in 2089. Having 63 years unexpired we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal 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.