The market value of Orpington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold premises in Orpington with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
Lease extensions in Orpington can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 a wealth of experience 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.
Last October Thomas, started to get near to the eighty-year mark with the lease on his garden apartment in Orpington. Having bought his flat twenty years ago, the unexpired term was of little bearing. Thankfully, it dawned on him that he would soon be paying way over the odds for Extending the lease. Thomas arranged for a lease extension just in the nick of time in January. Thomas and the landlord ultimately settled on sum of £6,000 . If he had missed the deadline, the sum would have gone up by a minimum £875.
In 2013 we were called by Mr M Bennett who, having acquired a newly refurbished flat in Orpington in June 2000. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical homes in Orpington with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease lapsed in 2101. Having 80 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
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 related to 1 flat. The unexpired term as at the valuation date was 50.57 years.