On the balance of probabilities where you own a flat in Orpington you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Orpington can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 Orpington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago George, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Orpington. Having bought his home twenty years ago, the length of the lease was of minimal relevance. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. George extended the lease just under the wire in May. George and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £875.
In 2012 we were e-mailed by Mr and Mrs. P Kelly who, having owned a one bedroom flat in Orpington in April 1999. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar residencies in Orpington with an extended lease were valued about £225,800. The average ground rent payable was £60 billed annually. The lease elapsed on 13 July 2086. Taking into account 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including expenses.
An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired lease term was 50.57 years.