Peckham leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Peckham will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Peckham with over 100 years outstanding 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Peckham can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 procuring Peckham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin owned a studio apartment in Peckham being sold with a lease of fraction over sixty years remaining. Benjamin on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last February we were e-mailed by Mr and Mrs. K Davies , who owned a garden apartment in Peckham in June 2010. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Similar premises in Peckham with a long lease were valued around £290,000. The average amount of ground rent was £45 invoiced annually. The lease came to a finish on 7 July 2097. Having 73 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
An example of a Freehold Enfranchisement case for a Peckham property is 31 Kings Grove in January 2012. By a claim form issued on 11" August 2011 under action number 1LB01618 in the Lambeth County Court the applicant tenants sought dispensation under section 26 of the Leasehold Reform, Housing and Urban Development Act 1993 from the requirement to serve a notice under section 13 of that Act in order to purchase the freehold of the premises. The Tribunal decided the amount payable for the freehold as £10,728 This case related to 2 flats. The remaining number of years on the lease was 80.5 years.