Unfortunately that a Sidmouth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Sidmouth property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Sidmouth will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in Sidmouth can be a difficult process. We recommend you obtain 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 a wealth of experience 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.
In recent months Lucas, started to get near to the 80-year mark with the lease on his studio flat in Sidmouth. Having bought his home two decades ago, the length of the lease was of minimal significance. Luckily, he realised he needed to take steps soon on a lease extension. Lucas arranged for a lease extension at the eleventh hour in March. Lucas and the landlord ultimately settled on an amount of £6,000 . If the lease had dropped below 80 years, the premium would have become more costly by a minimum £850.
Mr and Mrs. I Morel completed a basement flat in Sidmouth in March 1999. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Sidmouth with a long lease were in the region of £290,000. The mid-range amount of ground rent was £60 invoiced annually. The lease concluded in 2106. Considering the 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
In 2013 we were approached by Dr Jackson Pérez who, having owned a garden flat in Sidmouth in March 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Sidmouth with a long lease were worth £200,800. The mid-range ground rent payable was £65 billed quarterly. The lease ran out in 2086. Taking into account 60 years left we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including fees.