With a domestic leasehold property in Sale, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years remaining. Leasehold owners in Sale with a lease approaching 81 years left should seriously consider extending it sooner than later. When the lease term has under 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Sale,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sale valuers.
Following unsuccessful correspondence with the freeholder of her first floor apartment in Sale, Jodie started the lease extension process just as the lease was approaching the crucial eighty-year threshold. The lease extension was concluded in June 2013. The landlord’s charges were restricted to below 700 pounds.
Last Spring we were contacted by Dr L Carter , who completed a purpose-built apartment in Sale in June 1996. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Sale with 100 year plus lease were valued about £235,200. The mid-range ground rent payable was £45 collected yearly. The lease ended on 25 May 2092. Taking into account 66 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Last Christmas we were phoned by Ms Anna Roux , who acquired a ground floor apartment in Sale in August 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable premises in Sale with an extended lease were in the region of £275,000. The average ground rent payable was £55 billed monthly. The lease elapsed on 25 May 2103. Taking into account 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.