The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Sandbanks may extend the lease for a further 90 years in accordance with statute. Please think carefully before delaying your Sandbanks lease extension. Postponing that expense now simply increases the amount you will eventually be required to pay to extend the lease.
Leasehold premises in Sandbanks with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Sandbanks can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 a wealth of experience dealing with Sandbanks lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Callum, came very near to the eighty-year threshold with the lease on his ground floor flat in Sandbanks. Having bought his flat 18 years previously, the length of the lease was of little bearing. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Callum was able to extend his lease just in the nick of time last April. Callum and the freeholder eventually settled on the final figure of £5,000 . If the lease had descended below eighty years, the sum would have become more costly by at least £1,000.
In 2009 we were phoned by Ms Bethan Khan who, having bought a one bedroom flat in Sandbanks in October 2009. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable properties in Sandbanks with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease elapsed on 21 May 2086. Taking into account 60 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 plus costs.
Last year we were phoned by Mr F Brooks , who bought a studio flat in Sandbanks in June 2002. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical properties in Sandbanks with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease elapsed on 27 September 2096. Taking into account 70 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.