It’s an underpublicised certainty that a Sipson residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Sipson property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term slips 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. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Sipson will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Sipson with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
Lease extensions in Sipson can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
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 procuring Sipson lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Tommy, started to get close to the 80-year mark with the lease on his leasehold apartment in Sipson. Having bought his property two decades ago, the lease term was of no bearing. Luckily, he realised he would soon be paying way over the odds for Extending the lease. Tommy was able to extend his lease just ahead of time last March. Tommy and the landlord subsequently settled on sum of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £1,075.
In 2010 we were e-mailed by Mr and Mrs. G Bernard who, having acquired a basement apartment in Sipson in September 2006. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical premises in Sipson with a long lease were valued about £265,000. The mid-range amount of ground rent was £55 billed monthly. The lease ran out in 2100. Having 74 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Sipson flat is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The unexpired term was 69 years.