Unfortunately that a Sipson residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Sipson property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Sipson will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Sipson with more than one hundred years unexpired on the lease are often referred to as ‘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 freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Sipson,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sipson valuers.
After protracted discussions with the freeholder of her leasehold apartment in Sipson, Ashleigh commenced the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension was concluded in August 2009. The landlord’s fees were negotiated to less than six hundred GBP.
In 2011 we were contacted by Mrs Hollie Phillips who, having bought a garden flat in Sipson in November 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical premises in Sipson with 100 year plus lease were worth £166,400. The average ground rent payable was £60 billed monthly. The lease concluded on 9 February 2078. Given that there were 54 years as a residual term we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of costs.
An example of a Freehold Enfranchisement case for a Sipson premises 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 term as at the valuation date was 69 years.