Sidmouth leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease dips below eighty years - otherwise a higher amount will be due. Leasehold owners in Sidmouth will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The lawyers that we work with procure Sidmouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Seth owned a conversion flat in Sidmouth being sold with a lease of fraction over 72 years outstanding. Seth informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2010 we were approached by Dr F Brown who, having moved into a ground floor flat in Sidmouth in June 2010. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Sidmouth with an extended lease were in the region of £265,000. The average ground rent payable was £50 billed per annum. The lease finished in 2099. Considering the 73 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Dr M Wilson bought a studio apartment in Sidmouth in July 2006. The question was if we could approximate the premium would be to extend the lease by ninety years. Identical residencies in Sidmouth with 100 year plus lease were worth £264,000. The average ground rent payable was £60 collected every twelve months. The lease expiry date was on 3 April 2079. Given that there were 53 years unexpired we estimated the premium to the landlord for the lease extension to be within £37,100 and £42,800 plus legals.