Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Sale. Clearly, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Sale have the right to extend the lease for a further 90 years in accordance with legislation. You should give careful consideration before delaying your Sale lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Halifax | |
| TSB | |
| Virgin |
Lease extensions in Sale can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 in-depth market knowledge 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.
Last year Zachary, came critically close to the eighty-year mark with the lease on his ground floor flat in Sale. Having bought his flat twenty years previously, the lease term was of minimal concern. Fortunately, he became aware that he would imminently be paying an inflated amount for a lease extension. Zachary was able to extend his lease at the eleventh hour in March. Zachary and the freeholder via the managing agents subsequently settled on the final figure of £6,000 . If the lease had fallen to less than 80 years, the amount would have increased by at least £850.
In 2013 we were e-mailed by Dr Lily Gunderson who, having was assigned a lease of a newly refurbished flat in Sale in August 1999. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Sale with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease terminated in 2083. Considering the 57 years left we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus costs.
Mr E Gunderson was assigned a lease of a purpose-built apartment in Sale in October 1995. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparative properties in Sale with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2094. Given that there were 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.