It’s an underpublicised truth that a Sandbanks residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Sandbanks property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Sandbanks will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Sandbanks with more than 100 years unexpired 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 buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 in-depth market knowledge and the close ties they enjoy with Sandbanks valuers.
Teddy was the the leasehold proprietor of a high value apartment in Sandbanks being sold with a lease of just over 61 years remaining. Teddy informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Teddy to invoke his statutory right. Teddy procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last November we were approach by Mr and Mrs. H Young , who was assigned a lease of a purpose-built apartment in Sandbanks in November 2009. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Identical premises in Sandbanks with an extended lease were in the region of £232,800. The average ground rent payable was £45 invoiced per annum. The lease expired in 2091. Taking into account 65 years outstanding we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Last August we were called by Mr M Lefèvre , who moved into a first floor flat in Sandbanks in April 1999. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative residencies in Sandbanks with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 billed quarterly. The lease terminated in 2102. Considering the 76 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.