There is no doubt about it a leasehold property in Sale is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Sale will qualify for this right; nevertheless a lawyer will be able to confirm if you qualify for a lease extension. 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.
Leasehold premises in Sale with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Lease extensions in Sale can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Sale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the landlord of her studio apartment in Sale, Abbie commenced the lease extension process just as the lease was coming close to the critical eighty-year mark. The transaction completed in February 2013. The freeholder’s charges were kept to an absolute minimum.
Last month we were called by Mr and Mrs. T Richardson , who completed a one bedroom flat in Sale in May 1997. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable premises in Sale with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease expired in 2077. Taking into account 51 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 plus costs.
Last year we were called by Mr and Mrs. B Roux , who purchased a first floor apartment in Sale in May 1997. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Sale with a long lease were valued about £210,600. The average ground rent payable was £45 collected yearly. The lease concluded in 2088. Considering the 62 years left we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of expenses.