When it comes to residential leasehold property in Mottingham, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Anyone in Mottingham with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has below 80 years remaining, under the relevant statute the freeholder can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Mottingham 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 buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Mottingham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mottingham valuers.
Hunter was the the leasehold owner of a conversion apartment in Mottingham on the market with a lease of fraction over 72 years unexpired. Hunter on an informal basis spoke with his freeholder being 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 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 Hunter to invoke his statutory right. Hunter procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were contacted by Ms Bethany André who, having completed a purpose-built flat in Mottingham in July 2012. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable properties in Mottingham with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease concluded in 2104. Given that there were 79 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
An example of a Lease Extension matter before the tribunal for a Mottingham property 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.