Sandbanks leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Sandbanks enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Sandbanks you should investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Sandbanks flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold properties in Sandbanks with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Sandbanks,the lease extension lawyers that we work with will always be willing 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.
Matthew owned a high value apartment in Sandbanks on the market with a lease of just over 59 years remaining. Matthew on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Summer we were contacted by Dr Seth Allen , who moved into a purpose-built apartment in Sandbanks in March 2005. We are asked if we could estimate the price could be for a ninety year lease extension. Similar premises in Sandbanks with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended in 2095. Having 69 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
Dr Thomas Gunderson completed a one bedroom apartment in Sandbanks in January 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Sandbanks with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 billed annually. The lease came to a finish in 2106. Considering the 80 years remaining we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.