The re-sale value of a leasehold property in Mottingham is impacted by how long the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed prior to the eighty year cut off point. Leasehold Reform legislation enables Mottingham qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The lawyers 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.
Last October Riley, came very near to the 80-year threshold with the lease on his ground floor apartment in Mottingham. In buying his flat two decades ago, the lease term was of little relevance. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Riley extended the lease at the eleventh hour last January. Riley and the freeholder via the management company in the end settled on sum of £6,000 . If he had missed the deadline, the sum would have increased by at least £1,000.
Last Summer we were called by Mr Aarav García , who owned a basement flat in Mottingham in January 1995. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparative flats in Mottingham with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease terminated on 1 February 2104. Considering the 78 years left we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including 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 related to 1 flat. The unexpired lease term was 23.26 years.