On the balance of probabilities if you own a flat in Sandbanks you actually own a long leasehold interest over your property
Leasehold properties in Sandbanks with more than 100 years remaining on the lease are often regarded as a ‘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 upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Sandbanks lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to unsuccessful discussions with the freeholder of her leasehold apartment in Sandbanks, Holly initiated the lease extension process as the eighty year threshold was rapidly approaching. The legal work completed in March 2015. The freeholder’s fees were restricted to approximately 450 pounds.
Last Winter we were called by Mr and Mrs. V Ward , who bought a basement apartment in Sandbanks in May 1998. The question was if we could approximate the price could be for a 90 year lease extension. Comparable homes in Sandbanks with an extended lease were valued about £260,000. The average amount of ground rent was £50 billed per annum. The lease came to a finish on 6 February 2098. Given that there were 73 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. B Moore completed a purpose-built apartment in Sandbanks in November 2006. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Identical flats in Sandbanks with a long lease were worth £264,000. The mid-range ground rent payable was £60 invoiced yearly. The lease terminated on 7 April 2078. Considering the 53 years outstanding we estimated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including expenses.