When it comes to domestic leasehold premises in Sidcup, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years left. Residents in Sidcup with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. When a lease has under 80 years left, under the relevant statute the landlord can calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Sidcup with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
Lease extensions in Sidcup can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 in-depth market knowledge 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.
In recent months Leo, came precariously near to the 80-year mark with the lease on his purpose- built apartment in Sidcup. In buying his flat twenty years ago, the length of the lease was of minimal relevance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Leo extended the lease just under the wire in January. Leo and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If the lease had slid to less than eighty years, the premium would have escalated by a minimum £925.
In 2013 we were contacted by Dr Madeleine Bennett who, having purchased a ground floor apartment in Sidcup in May 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable homes in Sidcup with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 invoiced monthly. The lease terminated in 2098. Given that there were 72 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension decision for a Sidcup premises 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.