With a residential leasehold premises in Sandbanks, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years remaining. Anyone in Sandbanks with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has below 80 years left, under the current legislation the landlord can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Lease extensions in Sandbanks can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge 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.
Off the back of protracted discussions with the freeholder of her ground floor apartment in Sandbanks, Rachel started the lease extension process just as the lease was coming close to the crucial 80-year mark. The lease extension was concluded in March 2006. The landlord’s costs were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. B Gray , who acquired a one bedroom apartment in Sandbanks in September 2000. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Sandbanks with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease expired on 7 August 2103. Having 77 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.
Last Spring we were contacted by Mr B James , who purchased a garden flat in Sandbanks in May 1997. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable flats in Sandbanks with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 billed annually. The lease concluded in 2083. Taking into account 57 years left we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.