There is no doubt about it a leasehold property in Mottingham is a wasting asset as a result of the shortening lease. If the residual term has, over one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years unexpired 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 reason why you should extend the lease sooner rather than later. Most flat owners in Mottingham will qualify for this right; that being said a lawyer can confirm if 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.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancers that we work with handle Mottingham 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.
After lengthy correspondence with the freeholder of her basement apartment in Mottingham, Millie initiated the lease extension process just as her lease was approaching the critical 80-year deadline. The lease extension was finalised in April 2010. The landlord’s fees were kept to an absolute minimum.
Last month we were called by Mr and Mrs. R Martinez , who purchased a garden apartment in Mottingham in February 2007. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative residencies in Mottingham with an extended lease were valued around £189,000. The average ground rent payable was £55 invoiced every twelve months. The lease terminated on 22 September 2079. Considering the 53 years remaining we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.
An example of a Lease Extension case for a Mottingham flat 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.