Chances are that where you own a flat in Sale you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service will provide you better control over the value of your Sale leasehold, as your property will be more valuable and marketable in terms of lease length should you want 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.
Kyle was the the leasehold owner of a studio flat in Sale being marketed with a lease of fraction over fifty eight years remaining. Kyle on an informal basis contacted his freeholder 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 new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Kyle to invoke his statutory right. Kyle procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Ms N Martin took over the lease of a basement apartment in Sale in February 1998. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Sale with a long lease were worth £191,000. The mid-range ground rent payable was £65 billed monthly. The lease concluded in 2084. Given that there were 58 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of fees.
In 2010 we were e-mailed by Ms Zoe López who, having purchased a first floor apartment in Sale in January 2001. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Sale with a long lease were valued about £250,000. The mid-range ground rent payable was £50 collected yearly. The lease concluded in 2095. Given that there were 69 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.