Chances are that where you own a flat in Sipson you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a freeholder in Sipson,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sipson valuers.
Following lengthy correspondence with the landlord of her one bedroom flat in Sipson, Bethan commenced the lease extension process just as her lease was coming close to the critical 80-year deadline. The legal work completed in September 2007. The landlord’s costs were restricted to about 600 pounds.
Dr E Brown was assigned a lease of a studio flat in Sipson in April 2004. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable flats in Sipson with a long lease were valued around £246,800. The average ground rent payable was £60 collected per annum. The lease elapsed on 25 March 2076. Given that there were 50 years remaining we calculated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 not including legals.
An example of a Freehold Enfranchisement case for a Sipson residence is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The number of years remaining on the existing lease(s) was 69 years.