Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Mottingham. Clearly, the period of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Mottingham have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Mottingham lease extension. Putting off the cost now simply increases the price you will eventually have to pay for a lease extension
Leasehold premises in Mottingham with in excess of 100 years remaining 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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.
Two years ago Ollie, came seriously close to the eighty-year threshold with the lease on his first floor flat in Mottingham. In buying his home two decades ago, the lease term was of no concern. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Ollie extended the lease just ahead of time last April. Ollie and the landlord subsequently agreed on the final figure of £5,500 . If he had missed the deadline, the premium would have gone up by at least £875.
In 2010 we were called by Mr and Mrs. O Rodríguez who, having took over the lease of a newly refurbished apartment in Mottingham in October 2007. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Mottingham with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected quarterly. The lease elapsed on 21 September 2106. Taking into account 80 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
An example of a Lease Extension case 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 unexpired lease term was 23.26 years.