The nearer a domestic lease in Sipson nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Sipson will qualify for this right; that being said a lawyer should be able to advise if you are eligible 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.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Sipson,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sipson valuers.
Last October Teddy, came very close to the eighty-year threshold with the lease on his leasehold flat in Sipson. In buying his flat two decades ago, the lease term was of minimal bearing. Luckily, he became aware that he needed to take steps soon on Extending the lease. Teddy arranged for a lease extension at the eleventh hour in September. Teddy and the freeholder via the management company eventually settled on a premium of £5,500 . If the lease had slid below 80 years, the amount would have increased by at least £950.
Last February we were contacted by Dr U Bell , who owned a ground floor flat in Sipson in November 2000. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Similar residencies in Sipson with a long lease were in the region of £280,000. The average amount of ground rent was £55 invoiced monthly. The lease concluded on 8 July 2103. Having 78 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.
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 was in relation to 2 flats. The unexpired residue of the current lease was 69 years.