Biggin Hill leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Biggin Hill tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Biggin Hill you really ought to investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Biggin Hill leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Biggin Hill can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Biggin Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Evan, started to get close to the 80-year threshold with the lease on his garden flat in Biggin Hill. Having bought his property 18 years ago, the unexpired term was of little bearing. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. Evan extended the lease at the eleventh hour in May. Evan and the landlord subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the sum would have become more costly by at least £875.
Last Summer we were approach by Mr J Morris , who purchased a studio apartment in Biggin Hill in November 2000. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative homes in Biggin Hill with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 invoiced monthly. The lease came to a finish on 14 October 2101. Taking into account 76 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
An example of a Lease Extension matter before the tribunal for a Biggin Hill premises 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 remaining number of years on the lease was 50.57 years.