Unfortunately that a Sandbanks residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Sandbanks property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Most leasehold owners in Sandbanks will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Santander | |
| The Mortgage Works |
Lease extensions in Sandbanks can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor 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 procuring Sandbanks lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kian was the the leasehold proprietor of a 2 bedroom apartment in Sandbanks being sold with a lease of just over 59 years left. Kian informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Kian to invoke his statutory right. Kian obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were approach by Mr and Mrs. B Moreau , who bought a first floor apartment in Sandbanks in July 2000. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar premises in Sandbanks with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 collected yearly. The lease ended in 2096. Given that there were 70 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Last month we were e-mailed by Mrs Isabel Mercier , who owned a recently refurbished apartment in Sandbanks in April 2011. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Similar premises in Sandbanks with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease termination date was on 25 October 2076. Considering the 50 years left we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 not including fees.