Chances are that where you own a flat in Sipson you actually own a long leasehold interest over your property
Leasehold properties in Sipson with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service 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. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Sipson can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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 Sipson lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Kian, came dangerously near to the 80-year threshold with the lease on his leasehold apartment in Sipson. In buying his home two decades ago, the unexpired term was of no relevance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Kian extended the lease at the eleventh hour last March. Kian and the landlord subsequently settled on the final figure of £5,500 . If he not met the deadline, the price would have increased by at least £900.
In 2009 we were approached by Dr Austin Moreau who, having was assigned a lease of a basement apartment in Sipson in May 2011. The question was if we could estimate the premium would be for a ninety year lease extension. Identical homes in Sipson with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 21 April 2098. Taking into account 72 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Sipson premises 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 related to 2 flats. The unexpired lease term was 69 years.