Sandbanks residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| Nationwide Building Society | |
| TSB |
Using our service gives you increased control over the value of your Sandbanks leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Reuben was the the leasehold proprietor of a conversion apartment in Sandbanks on the market with a lease of fraction over 59 years unexpired. Reuben on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Reuben to exercise his statutory right. Reuben procured expert advice and secured an acceptable resolution informally and sell the flat.
Last Spring we were called by Ms Ellen François , who owned a one bedroom apartment in Sandbanks in April 2004. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar homes in Sandbanks with 100 year plus lease were valued about £215,600. The average amount of ground rent was £45 billed yearly. The lease ended in 2088. Given that there were 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including professional charges.
In 2013 we were e-mailed by Mr and Mrs. K King who, having was assigned a lease of a garden apartment in Sandbanks in August 2001. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Sandbanks with an extended lease were worth £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished in 2099. Considering the 73 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.