There is no doubt about it a leasehold flat or house in Honor Oak is a wasting asset as a result of the diminishing lease term. Where the lease has, more than one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Honor Oak will qualify for this right; however a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
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 premises. In such situations there is often little to be gained by purchasing 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers that we work with handle Honor Oak lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Two years ago Freddie, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Honor Oak. Having bought his flat two decades ago, the length of the lease was of minimal significance. As luck would have it, he realised he needed to take action soon on Extending the lease. Freddie arranged for a lease extension just in the nick of time last April. Freddie and the freeholder eventually agreed on a premium of £5,000 . If he had missed the deadline, the premium would have escalated by at least £875.
Mr Eliot Thompson purchased a ground floor apartment in Honor Oak in April 2003. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Identical flats in Honor Oak with an extended lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed in 2085. Having 59 years left we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 plus costs.
An example of a Lease Extension case 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 related to 1 flat. The unexpired term was 61.81 years.