Streatham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Streatham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Streatham you would be well advised to see if your lease has between 70 and ninety years left. There are good reasons why a Streatham flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Streatham with in excess of 100 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Streatham can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in this area.
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 in-depth market knowledge dealing with Streatham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Nathaniel, started to get near to the eighty-year mark with the lease on his ground floor apartment in Streatham. Having bought his property 19 years ago, the unexpired term was of minimal concern. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Nathaniel extended the lease just under the wire in September. Nathaniel and the freeholder via the managing agents eventually agreed on sum of £6,000 . If he had missed the deadline, the sum would have increased by a minimum £1,025.
In 2010 we were approached by Dr Bethany Mercier who, having took over the lease of a purpose-built flat in Streatham in May 2010. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar premises in Streatham with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected yearly. The lease lapsed on 25 October 2085. Taking into account 60 years remaining we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus fees.
An example of a Lease Extension case for a Streatham residence is Flat 12, Newlands Court Streatham Common North in May 2012. the decision of the Tribunal was that the premium payable by the Applicants to the Respondent for the new lease of the Premises be £70,140. This case affected 1 flat. The unexpired lease term was 23.25 years.