Mottingham leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Mottingham will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Mottingham with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Santander | |
| The Mortgage Works |
Using our service will provide you better control over the value of your Mottingham leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jamie owned a high value apartment in Mottingham on the market with a lease of just over 59 years unexpired. Jamie on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
Last year we were approach by Mr V Young , who completed a purpose-built flat in Mottingham in May 2007. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Mottingham with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 billed quarterly. The lease ended in 2095. Having 69 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
An example of a Lease Extension decision for a Mottingham premises is 49 Woodstock Court Burnt Ash Hill in May 2012. the payment of £64,116 by the leaseholder was the premium which the Tribunal found due for the lease extension in this case. This case affected 1 flat. The number of years remaining on the existing lease(s) was 23.26 years.