Sidmouth leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Sidmouth will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Sidmouth leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Callum, started to get near to the 80-year mark with the lease on his ground floor apartment in Sidmouth. Having bought his property two decades ago, the unexpired term was of no importance. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Callum arranged for a lease extension just under the wire last April. Callum and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had descended to less than eighty years, the sum would have become more exhorbitant by at least £950.
Last Summer we were approach by Mr Kai Campbell , who took over the lease of a basement flat in Sidmouth in August 2011. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable premises in Sidmouth with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed yearly. The lease ended on 2 May 2082. Considering the 56 years left we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including professional charges.
In 2010 we were contacted by Dr M Díaz who, having purchased a basement apartment in Sidmouth in July 1996. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Sidmouth with a long lease were valued around £242,600. The mid-range ground rent payable was £45 collected quarterly. The lease terminated on 16 February 2093. Taking into account 67 years outstanding we calculated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of legals.