It’s a harsh truth that a Great Sankey 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 early years due to the loss of value being disguised by increases in the Great Sankey property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Great Sankey will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Great Sankey with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Great Sankey,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 Great Sankey valuers.
Nathan was the the leasehold proprietor of a high value flat in Great Sankey on the market with a lease of fraction over sixty years remaining. Nathan on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. A Sánchez owned a ground floor flat in Great Sankey in August 2001. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable residencies in Great Sankey with an extended lease were worth £171,800. The average amount of ground rent was £55 collected monthly. The lease came to a finish in 2074. Taking into account 50 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of professional charges.
In 2013 we were approached by Mr and Mrs. B Torres who, having moved into a studio apartment in Great Sankey in February 2002. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical residencies in Great Sankey with an extended lease were worth £280,000. The mid-range ground rent payable was £45 collected yearly. The lease lapsed on 3 June 2094. Given that there were 70 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.