Sandbanks leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops under eighty years - otherwise a higher amount will be due. Flat owners in Sandbanks will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Sandbanks can be a difficult process. We recommend you obtain guidance from a lawyer 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.
Leon owned a studio flat in Sandbanks on the market with a lease of a few days over 59 years remaining. Leon on an informal basis spoke with his freeholder 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 on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Mrs D Rose who, having was assigned a lease of a one bedroom flat in Sandbanks in June 1998. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Sandbanks with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed yearly. The lease ended in 2102. Having 77 years as a residual term we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
Last month we were called by Dr Y Anderson , who purchased a basement apartment in Sandbanks in August 2012. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar residencies in Sandbanks with a long lease were valued around £183,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease expired on 3 October 2082. Given that there were 57 years unexpired we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.