Sandbach leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% 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 additional value that a lease extension will add to the property. Leasehold owners in Sandbach will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Sandbach 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Lease extensions in Sandbach can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.
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 Sandbach lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Zachary was the the leasehold proprietor of a 2 bedroom flat in Sandbach on the market with a lease of a few days over fifty eight years left. Zachary on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Zachary to exercise his statutory right. Zachary procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2011 we were approached by Mr N Garcia who, having was assigned a lease of a basement flat in Sandbach in June 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative flats in Sandbach with an extended lease were worth £200,800. The average ground rent payable was £65 invoiced quarterly. The lease terminated on 18 July 2085. Having 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 not including expenses.
Mr and Mrs. P Bertrand took over the lease of a first floor flat in Sandbach in June 2003. We are asked if we could estimate the premium would be to extend the lease by 90 years. Similar homes in Sandbach with a long lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease ran out in 2096. Given that there were 71 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.