The re-sale value of a leasehold property in Sidmouth is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised well before the 80 year cut off point. Current legislation enables Sidmouth qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly 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 decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Sidmouth can be a difficult process. We recommend you get guidance from a conveyancer 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 in-depth market knowledge dealing with Sidmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the freeholder of her garden apartment in Sidmouth, Imogen initiated the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The legal work completed in November 2013. The landlord’s charges were restricted to below 650 pounds.
In 2010 we were e-mailed by Mrs R Ward who, having acquired a garden apartment in Sidmouth in May 2001. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative properties in Sidmouth with an extended lease were in the region of £166,400. The average ground rent payable was £60 collected annually. The lease came to a finish on 24 October 2080. Having 54 years left we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.
Last Autumn we were e-mailed by Mr and Mrs. U Roberts , who acquired a first floor apartment in Sidmouth in June 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar residencies in Sidmouth with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 invoiced quarterly. The lease concluded in 2091. Having 65 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.