For anyone whose Streatham flat is held on a long lease, the message is clear – if you ignore the situation, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Streatham with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Yorkshire 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. |
The conveyancers that we work with undertake Streatham 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 conveyancing solicitor we work with provide it.
Off the back of unsuccessful correspondence with the freeholder of her garden flat in Streatham, Abbie commenced the lease extension process just as the lease was approaching the all-important eighty-year threshold. The legal work was concluded in November 2011. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were phoned by Mr and Mrs. W Martinez , who bought a studio apartment in Streatham in January 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Streatham with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease came to a finish in 2096. Considering the 71 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
An example of a Lease Extension decision for a Streatham property 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 was in relation to 1 flat. The remaining number of years on the lease was 23.25 years.