Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Orpington. Clearly, the term of lease left shortens over time. This may pass by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Orpington have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give due consideration before putting off your Orpington lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | |
| Santander | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Orpington can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 in-depth market knowledge procuring Orpington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jayden was the the leasehold proprietor of a 2 bedroom apartment in Orpington being marketed with a lease of fraction over 61 years unexpired. Jayden informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
In 2009 we were e-mailed by Dr Kirsty Bertrand who, having completed a garden flat in Orpington in May 2005. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical premises in Orpington with an extended lease were valued around £285,000. The average ground rent payable was £45 billed monthly. The lease ran out in 2098. Considering the 72 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
An example of a Lease Extension decision for a Orpington 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 residue of the current lease was 50.57 years.