As the length of the unexpired term of a Sale residential lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner rather than later. Many flat owners in Sale will qualify for this right; that being said a conveyancer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Sale with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Sale can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 dealing with Sale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Blake was the the leasehold proprietor of a conversion apartment in Sale being sold with a lease of fraction over 61 years outstanding. Blake on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Blake to exercise his statutory right. Blake procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Dr Erin André owned a studio apartment in Sale in January 1997. The question was if we could estimate the price would be for a 90 year extension to my lease. Similar residencies in Sale with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 billed every twelve months. The lease ended on 5 February 2084. Considering the 59 years unexpired we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of fees.
Last month we were called by Mr Kyle Bailey , who was assigned a lease of a first floor flat in Sale in October 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Sale with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ended on 1 September 2095. Taking into account 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 not including legals.