There is no doubt about it a leasehold flat or house in Sandhurst is a wasting asset as a result of the diminishing lease term. Where the residual term has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Sandhurst will qualify for this right; that being said a conveyancer will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Sandhurst with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Sandhurst,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sandhurst valuers.
Trailing unsuccessful discussions with the freeholder of her studio apartment in Sandhurst, Lucy started the lease extension process just as the lease was approaching the crucial eighty-year mark. The lease extension completed in February 2008. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. B Cooper owned a first floor apartment in Sandhurst in August 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable properties in Sandhurst with an extended lease were worth £233,200. The average ground rent payable was £60 collected per annum. The lease ran out on 23 February 2086. Considering the 61 years remaining we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus legals.
In 2011 we were contacted by Ms Elizabeth Jackson who, having moved into a purpose-built apartment in Sandhurst in January 2009. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparative premises in Sandhurst with a long lease were worth £166,800. The average ground rent payable was £50 invoiced every twelve months. The lease finished in 2075. Taking into account 50 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of legals.