When it comes to residential leasehold premises in Sandbach, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Sandbach with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years remaining, under the relevant statute the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Using our service will provide you increased control over the value of your Sandbach leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the landlord of her garden flat in Sandbach, Aimee commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was concluded in October 2014. The freeholder’s fees were restricted to less than 650 GBP.
In 2013 we were contacted by Mr and Mrs. V Gómez who, having moved into a one bedroom apartment in Sandbach in November 2007. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable homes in Sandbach with 100 year plus lease were worth £285,000. The average ground rent payable was £55 invoiced per annum. The lease finished on 15 September 2104. Considering the 79 years outstanding we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
In 2013 we were phoned by Dr George Sharif who, having took over the lease of a basement apartment in Sandbach in March 2005. The question was if we could estimate the premium could be to extend the lease by 90 years. Similar premises in Sandbach with an extended lease were valued about £193,400. The average ground rent payable was £65 collected per annum. The lease ran out on 5 April 2084. Considering the 59 years remaining we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of costs.