Unfortunately that a Sandiacre residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Sandiacre property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining slips under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Sandiacre will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Sandiacre with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Using our service gives you better control over the value of your Sandiacre leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the freeholder of her ground floor apartment in Sandiacre, Kate started the lease extension process as the 80 year mark was fast coming. The transaction was concluded in June 2009. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. R Ricardo was assigned a lease of a first floor flat in Sandiacre in April 2007. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Identical residencies in Sandiacre with a long lease were worth £270,000. The average ground rent payable was £65 billed monthly. The lease elapsed on 4 April 2093. Having 68 years outstanding we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Mr John Richardson purchased a studio apartment in Sandiacre in February 2003. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Sandiacre with an extended lease were valued around £208,600. The average ground rent payable was £60 billed quarterly. The lease terminated on 7 May 2082. Having 57 years remaining we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of legals.