When it comes to residential leasehold premises in Sale, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years remaining. Anyone in Sale with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has fewer than eighty years remaining, under the current statute the landlord can calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Sale with over 100 years outstanding on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you better control over the value of your Sale leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a 2 bedroom flat in Sale on the market with a lease of fraction over sixty years remaining. Lucas informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Lucas to exercise his statutory right. Lucas procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Dr Jason Richardson moved into a garden apartment in Sale in March 1999. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable residencies in Sale with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out in 2095. Considering the 69 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
In 2013 we were e-mailed by Dr S Martinez who, having purchased a garden flat in Sale in August 2011. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparative flats in Sale with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed on 15 July 2106. Considering the 80 years left we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.