With a domestic leasehold property in Sandbanks, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years remaining. Leasehold owners in Sandbanks with a lease drawing near to 81 years left should seriously think of extending it sooner than later. Once the lease term has below eighty years outstanding, under the current legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Sandbanks with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Sandbanks,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sandbanks valuers.
Subsequent to lengthy correspondence with the freeholder of her basement apartment in Sandbanks, Jodie started the lease extension process as the 80 year deadline was fast advancing. The lease extension was concluded in March 2006. The landlord’s fees were kept to an absolute minimum.
Last Summer we were approach by Dr Alexander Lefebvre , who acquired a one bedroom flat in Sandbanks in June 2008. The question was if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Sandbanks with an extended lease were in the region of £265,000. The average amount of ground rent was £50 collected quarterly. The lease terminated on 21 September 2099. Taking into account 74 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
Mr and Mrs. K Dupont completed a garden flat in Sandbanks in October 1995. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar residencies in Sandbanks with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 collected annually. The lease expiry date was in 2079. Having 54 years remaining we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus professional charges.