Sidcup leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Sidcup enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Sidcup you would be well advised to see if your lease has between 70 and 90 years remaining. There are good reasons why a Sidcup leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Sidcup with more than 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Sidcup 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.
Last year Alfie, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Sidcup. In buying his flat two decades ago, the unexpired term was of minimal importance. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. Alfie was able to extend his lease just under the wire in May. Alfie and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by at least £925.
Last September we were called by Mr Muhammad Hernández , who was assigned a lease of a first floor apartment in Sidcup in May 2012. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative residencies in Sidcup with a long lease were valued around £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease lapsed on 10 February 2096. Given that there were 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Sidcup residence is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.