The re-sale value of a leasehold property in Biggin Hill depends on how long the lease has remaining. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that all matters can be finalised in advance of the 80 year cut off point. Statute entitles Biggin Hill qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Biggin Hill with in excess of 100 years unexpired 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Biggin Hill leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the landlord of her two bedroom apartment in Biggin Hill, Paige commenced the lease extension process just as her lease was nearing the critical 80-year mark. The legal work was finalised in March 2012. The landlord’s fees were negotiated to a tad over five hundred pounds.
Mr and Mrs. D Torres completed a first floor flat in Biggin Hill in June 1997. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Biggin Hill with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 collected every twelve months. The lease concluded in 2076. Considering the 51 years outstanding we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Biggin Hill residence 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 affected 1 flat. The unexpired lease term was 50.57 years.