Sale leases on residential deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Sale will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Sale leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the landlord of her one bedroom apartment in Sale, Rachel started the lease extension process just as the lease was nearing the critical 80-year mark. The legal work was finalised in January 2005. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were approach by Mrs Jasmine Díaz , who purchased a recently refurbished flat in Sale in April 2008. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative residencies in Sale with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease expired on 4 October 2099. Having 73 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
In 2014 we were e-mailed by Dr V Michel who, having took over the lease of a garden flat in Sale in April 1998. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical homes in Sale with an extended lease were worth £264,000. The average ground rent payable was £60 billed yearly. The lease concluded on 7 May 2079. Having 53 years outstanding we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of professional charges.