Unfortunately that a Sedgefield residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Sedgefield property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be payable. The majority of flat owners in Sedgefield will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Sedgefield with in excess of 100 years unexpired 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Sedgefield,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sedgefield valuers.
Last Spring Tommy, came critically near to the 80-year mark with the lease on his ground floor apartment in Sedgefield. Having purchased his home 18 years previously, the unexpired term was of no importance. Fortunately, he recognised he needed to take action soon on a lease extension. Tommy extended the lease at the eleventh hour in May. Tommy and the freeholder eventually settled on a premium of £5,000 . If the lease had descended lower than 80 years, the figure would have escalated by at least £1,025.
Mr Andrew Lefebvre owned a studio apartment in Sedgefield in May 2003. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical homes in Sedgefield with a long lease were in the region of £225,400. The average amount of ground rent was £45 billed monthly. The lease elapsed in 2088. Considering the 64 years left we estimated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of costs.
In 2011 we were approached by Mr and Mrs. H Brooks who, having took over the lease of a purpose-built apartment in Sedgefield in May 1996. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar properties in Sedgefield with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 billed quarterly. The lease ended on 7 June 2099. Taking into account 75 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.