The value of Sale leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is below than eighty years
Leasehold properties in Sale with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with undertake Sale lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Half a year ago Sam, started to get close to the eighty-year mark with the lease on his studio flat in Sale. In buying his home two decades ago, the length of the lease was of little concern. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Sam was able to extend his lease just ahead of time last September. Sam and the freeholder eventually settled on a premium of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £875.
Mr and Mrs. T Bailey was assigned a lease of a purpose-built apartment in Sale in September 2000. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar residencies in Sale with a long lease were worth £227,800. The average ground rent payable was £45 billed per annum. The lease terminated on 22 September 2091. Given that there were 65 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
Dr V Wright took over the lease of a ground floor flat in Sale in June 2005. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable premises in Sale with an extended lease were worth £275,000. The mid-range ground rent payable was £55 billed per annum. The lease finished on 25 July 2102. Having 76 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.