The market value of a leasehold property in Sacriston depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that all matters can be addressed in advance of the eighty year threshold. Statute enables Sacriston qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Sacriston with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Sacriston leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tommy owned a 2 bedroom apartment in Sacriston being sold with a lease of a little over 72 years remaining. Tommy on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were phoned by Mr and Mrs. D Brown who, having completed a purpose-built apartment in Sacriston in July 1996. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable flats in Sacriston with a long lease were in the region of £275,000. The average amount of ground rent was £65 collected per annum. The lease lapsed in 2092. Considering the 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
Last year we were phoned by Dr Ibrahim Watson , who took over the lease of a studio flat in Sacriston in February 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Sacriston with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease lapsed on 4 March 2081. Considering the 57 years outstanding we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including expenses.