With a domestic leasehold property in Sidcup, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in Sidcup with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. Once the lease term has fewer than 80 years outstanding, under the relevant statute the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Sidcup,the lease extension solicitors 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.
In recent months Aiden, started to get close to the 80-year mark with the lease on his garden flat in Sidcup. In buying his flat two decades ago, the lease term was of no relevance. Thankfully, he became aware that he needed to take action soon on a lease extension. Aiden arranged for a lease extension just under the wire in January. Aiden and the freeholder via the management company eventually settled on sum of £6,000 . If the lease had slipped to less than 80 years, the figure would have escalated by at least £1,150.
Last Winter we were e-mailed by Dr P Hill , who moved into a ground floor apartment in Sidcup in July 1999. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparable properties in Sidcup with 100 year plus lease were valued about £176,200. The average ground rent payable was £65 billed per annum. The lease lapsed in 2082. Considering the 56 years as a residual term we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of legals.
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 affected 1 flat.