When it comes to long leasehold premises in Sandbanks, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Residents in Sandbanks with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the current Act the landlord can calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| Santander | |
| Skipton Building Society |
Retaining our service gives you enhanced control over the value of your Sandbanks leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Toby owned a high value flat in Sandbanks on the market with a lease of a few days over 61 years outstanding. Toby informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Toby to exercise his statutory right. Toby procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2011 we were called by Dr Olivia Sharif who, having moved into a ground floor apartment in Sandbanks in March 1997. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable properties in Sandbanks with a long lease were worth £191,000. The mid-range amount of ground rent was £65 collected monthly. The lease finished in 2084. Considering the 58 years as a residual term we calculated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus professional charges.
In 2011 we were approached by Mr and Mrs. W Martin who, having moved into a garden apartment in Sandbanks in April 1995. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Sandbanks with 100 year plus lease were valued around £250,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out in 2095. Given that there were 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.