Sidcup residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Sidcup leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy negotiations with the freeholder of her garden flat in Sidcup, Chelsea commenced the lease extension process as the 80 year threshold was rapidly nearing. The lease extension was finalised in September 2009. The landlord’s fees were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. M Khan who, having was assigned a lease of a basement flat in Sidcup in October 1996. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar homes in Sidcup with a long lease were valued around £227,800. The average amount of ground rent was £45 collected every twelve months. The lease concluded on 23 August 2091. Given that there were 65 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.
An example of a Lease Extension decision for a Sidcup residence 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 was in relation to 1 flat.