Sydenham leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be due. Flat owners in Sydenham will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Sydenham with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Engaging our service gives you increased control over the value of your Sydenham leasehold, as your property will be more valuable and saleable in terms 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.
Last Autumn Isaac, came dangerously close to the 80-year mark with the lease on his one bedroom flat in Sydenham. In buying his flat 19 years ago, the unexpired term was of little concern. Luckily, he recognised he needed to take steps soon on a lease extension. Isaac arranged for a lease extension just under the wire last May. Isaac and the freeholder via the management company in the end settled on sum of £5,000 . If he had missed the deadline, the sum would have escalated by a minimum £950.
In 2011 we were contacted by Dr U Bernard who, having took over the lease of a one bedroom apartment in Sydenham in January 2000. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Similar flats in Sydenham with a long lease were in the region of £242,600. The average ground rent payable was £45 collected every twelve months. The lease expired in 2092. Considering the 67 years as a residual term we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus legals.
An example of a Lease Extension case for a Sydenham property is Flat 1 4 Border Crescent in March 2012. the Tribunal decided that the sum payable by the Applicants to the Respondent in respect of the new lease for the subject property should be £11,616.00 (ElevenThousand and Six Hundred and Sixteen Pounds) This case affected 1 flat. The number of years remaining on the existing lease(s) was 72.04 years.