Orpington residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Regardless of whether you are a tenant or a landlord in Orpington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Orpington valuers.
Alfie owned a high value flat in Orpington being marketed with a lease of fraction over fifty eight years outstanding. Alfie on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2010 we were approached by Mr and Mrs. A Bertrand who, having moved into a studio flat in Orpington in August 2007. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Orpington with an extended lease were worth £166,800. The average amount of ground rent was £50 billed yearly. The lease terminated on 17 July 2075. Given that there were 50 years unexpired we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus fees.
An example of a Lease Extension matter before the tribunal for a Orpington flat is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case related to 1 flat. The unexpired term was 50.57 years.