As the the remaining lease term of a Sydenham residential lease lessens so does its value and therefore the value of your property. If the residual term has, over 125 years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. Many flat owners in Sydenham will qualify for this right; however a conveyancer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Sydenham with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Sydenham 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.
In the wake of eight months of lengthy negotiations with the freeholder of her two bedroom apartment in Sydenham, Laura started the lease extension process as the eighty year mark was fast approaching. The legal work completed in June 2015. The freeholder’s costs were negotiated to slightly above 550 pounds.
Last Winter we were phoned by Mr and Mrs. C Lambert , who moved into a newly refurbished apartment in Sydenham in August 1997. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Sydenham with an extended lease were valued about £210,600. The average amount of ground rent was £45 billed quarterly. The lease lapsed in 2088. Considering the 62 years unexpired we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including fees.
An example of a Lease Extension decision 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 remaining number of years on the lease was 72.04 years.