Mottingham leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher premium will be payable. Leasehold owners in Mottingham will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Mottingham with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with procure 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.
Leo was the the leasehold owner of a conversion flat in Mottingham on the market with a lease of just over 72 years outstanding. Leo on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be payable on a lease extension were Leo to invoke his statutory right. Leo obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2013 we were phoned by Dr Kian Watson who, having moved into a purpose-built flat in Mottingham in April 2004. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Mottingham with a long lease were in the region of £210,000. The average amount of ground rent was £50 billed per annum. The lease ran out on 14 September 2104. Having 80 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
An example of a Lease Extension case for a Mottingham residence 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 was in relation to 1 flat. The unexpired term was 23.26 years.