As the the remaining lease term of a Sale residential lease lessens so does its value and therefore the value of your property. If the residual term has, more than one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. Most flat owners in Sale will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Sale can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Sale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the landlord of her two bedroom flat in Sale, Isabel initiated the lease extension process just as the lease was approaching the crucial eighty-year mark. The transaction completed in September 2012. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were e-mailed by Ms I James , who moved into a garden apartment in Sale in July 2006. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable flats in Sale with 100 year plus lease were valued around £173,800. The mid-range ground rent payable was £60 billed quarterly. The lease concluded in 2080. Considering the 55 years as a residual term we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.
Last Autumn we were called by Mrs N Gray , who owned a one bedroom apartment in Sale in January 2003. The dilemma was if we could approximate the price would be for a 90 year lease extension. Identical homes in Sale with an extended lease were worth £235,200. The average ground rent payable was £45 collected monthly. The lease expired in 2091. Having 66 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.