When it comes to long leasehold property in Sidcup, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Leasehold owners in Sidcup with a lease nearing 81 years left should seriously consider extending it sooner as opposed to later. When the lease term has below 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Sidcup can be a difficult process. We recommend you obtain professional help from a lawyer 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 procuring Sidcup lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Joseph, came precariously close to the 80-year mark with the lease on his ground floor flat in Sidcup. Having purchased his property two decades ago, the lease term was of minimal bearing. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Joseph was able to extend his lease just under the wire last June. Joseph and the freeholder ultimately agreed on an amount of £6,000 . If the lease had fallen lower than eighty years, the premium would have gone up by a minimum £1,125.
Dr Michael Jackson purchased a one bedroom apartment in Sidcup in June 2007. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparative flats in Sidcup with an extended lease were in the region of £200,800. The average ground rent payable was £65 collected annually. The lease end date was in 2086. Having 60 years left we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including fees.
An example of a Lease Extension case 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 affected 1 flat.