It’s an underpublicised truth that a Sidcup residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Sidcup property prices.Once your lease nears 85ish years, you should start thinking about 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 dips under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Sidcup will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Sidcup,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 Sidcup valuers.
Following unsuccessful correspondence with the freeholder of her leasehold flat in Sidcup, Sian started the lease extension process as the 80 year mark was fast nearing. The lease extension completed in October 2012. The freeholder’s charges were restricted to approximately 700 GBP.
Dr F Hernández moved into a basement flat in Sidcup in April 1995. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative properties in Sidcup with 100 year plus lease were valued about £168,800. The average ground rent payable was £60 collected annually. The lease terminated in 2081. Having 55 years outstanding we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus fees.
An example of a Lease Extension decision for a Sidcup premises is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case related to 1 flat.