Sandbanks leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Sandbanks will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 freeholder in Sandbanks,the lease extension experts 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.
Eliot was the the leasehold proprietor of a 2 bedroom flat in Sandbanks on the market with a lease of a few days over 59 years unexpired. Eliot on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
In 2011 we were approached by Dr Joseph Young who, having purchased a ground floor apartment in Sandbanks in October 2001. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable flats in Sandbanks with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 collected yearly. The lease elapsed in 2104. Considering the 78 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.
In 2009 we were called by Dr J Ricardo who, having owned a ground floor flat in Sandbanks in August 2004. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Sandbanks with a long lease were valued about £191,000. The average ground rent payable was £65 collected quarterly. The lease expired in 2084. Considering the 58 years remaining we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of costs.