When it comes to long leasehold premises in Sipson, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in Sipson with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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 get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Sipson lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Milo, came precariously close to the eighty-year threshold with the lease on his leasehold flat in Sipson. In buying his property 18 years ago, the unexpired term was of little interest. Luckily, he recognised he needed to take steps soon on Extending the lease. Milo arranged for a lease extension at the eleventh hour in January. Milo and the landlord subsequently agreed on the final figure of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £1,000.
Mr G Gómez bought a purpose-built apartment in Sipson in March 2012. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable flats in Sipson with an extended lease were in the region of £227,800. The mid-range ground rent payable was £45 invoiced yearly. The lease ran out on 27 January 2091. Given that there were 65 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
An example of a Freehold Enfranchisement case 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 affected 2 flats. The number of years remaining on the existing lease(s) was 69 years.