For anyone whose Sittingbourne home is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold premises in Sittingbourne with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Sittingbourne,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sittingbourne valuers.
Two years ago Aiden, came dangerously near to the eighty-year mark with the lease on his studio flat in Sittingbourne. Having purchased his home two decades ago, the lease term was of little concern. by good luck, he became aware that he needed to take action soon on Extending the lease. Aiden extended the lease just under the wire last September. Aiden and the freeholder subsequently settled on an amount of £5,500 . If the lease had dipped lower than 80 years, the price would have increased by a minimum £950.
Last Summer we were called by Mr and Mrs. J Roberts , who took over the lease of a one bedroom flat in Sittingbourne in October 2002. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Sittingbourne with an extended lease were in the region of £295,000. The average ground rent payable was £45 collected per annum. The lease elapsed in 2100. Given that there were 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
In 2011 we were contacted by Dr Niamh Díaz who, having took over the lease of a garden flat in Sittingbourne in June 2008. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparative flats in Sittingbourne with an extended lease were worth £248,000. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed on 7 June 2089. Given that there were 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 not including costs.