The market value of a leasehold property in Sidcup is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that all matters can be finalised prior to the 80 year cut off point. Current legislation enables Sidcup qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Sidcup with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a freeholder in Sidcup,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sidcup valuers.
Dylan was the the leasehold owner of a conversion apartment in Sidcup on the market with a lease of just over 61 years unexpired. Dylan informally spoke with his landlord a well known Manchester-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 to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last November we were phoned by Mr and Mrs. F Walker , who acquired a recently refurbished flat in Sidcup in September 2011. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Sidcup with an extended lease were worth £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease expiry date was on 4 August 2083. Having 57 years unexpired we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
An example of a Lease Extension decision for a Sidcup property 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.