There is no doubt about it a leasehold property in Sidcup is a wasting asset as a result of the diminishing lease term. Where the residual term has, over one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Sidcup will qualify for this right; that being said a lawyer will be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent 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 many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Sidcup can be a difficult process. We recommend you secure guidance 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 dealing with Sidcup lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finley was the the leasehold owner of a conversion flat in Sidcup being sold with a lease of fraction over 59 years left. Finley on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Finley to invoke his statutory right. Finley obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last Autumn we were contacted by Mrs O Patel , who completed a basement flat in Sidcup in June 2007. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical homes in Sidcup with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected quarterly. The lease end date was on 19 February 2087. Considering the 62 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Sidcup flat 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 affected 1 flat.