The closer a residential lease in New Eltham nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in New Eltham will meet the qualifying criteria; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in New Eltham with over one hundred years unexpired on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in New Eltham can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with New Eltham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Blake, started to get near to the eighty-year mark with the lease on his garden flat in New Eltham. In buying his flat two decades ago, the lease term was of minimal importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Blake arranged for a lease extension at the eleventh hour in June. Blake and the freeholder eventually settled on sum of £6,000 . If he had missed the deadline, the premium would have gone up by a minimum £875.
In 2012 we were called by Dr Y Lefèvre who, having owned a recently refurbished apartment in New Eltham in September 2007. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparable homes in New Eltham with a long lease were in the region of £240,600. The average amount of ground rent was £60 billed per annum. The lease end date was on 9 February 2086. Having 62 years outstanding we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of fees.
An example of a Lease Extension case for a New Eltham flat is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.