Unfortunately that a Sevenoaks residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Sevenoaks property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Sevenoaks will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Sevenoaks with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Sevenoaks,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sevenoaks valuers.
Kyle was the the leasehold proprietor of a 2 bedroom flat in Sevenoaks being marketed with a lease of just over sixty years unexpired. Kyle on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2012 we were phoned by Dr W Morgan who, having bought a purpose-built flat in Sevenoaks in February 1995. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical homes in Sevenoaks with 100 year plus lease were in the region of £220,400. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed in 2090. Having 64 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including costs.
Dr A Lewis was assigned a lease of a newly refurbished apartment in Sevenoaks in January 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Identical flats in Sevenoaks with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ended in 2101. Taking into account 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.