There is no doubt about it a leasehold flat or house in Great Sankey is a wasting asset as a result of the diminishing lease term. If the lease has, over one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage 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 main logic behind why you should extend the lease without delay. Many flat owners in Great Sankey will meet the qualifying criteria; however a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Great Sankey,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 Great Sankey valuers.
Two years ago Felix, came very near to the eighty-year mark with the lease on his leasehold flat in Great Sankey. In buying his home two decades ago, the lease term was of no relevance. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Felix was able to extend his lease just ahead of time last June. Felix and the landlord eventually settled on a premium of £5,000 . If he had missed the deadline, the price would have increased by a minimum £875.
Mr U Watson was assigned a lease of a basement flat in Great Sankey in September 2009. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical residencies in Great Sankey with an extended lease were valued around £290,000. The average ground rent payable was £45 invoiced monthly. The lease ran out on 17 October 2098. Having 72 years left we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of professional charges.
In 2011 we were called by Mr and Mrs. U Sharif who, having was assigned a lease of a studio apartment in Great Sankey in November 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Great Sankey with a long lease were in the region of £235,600. The average ground rent payable was £60 invoiced monthly. The lease ran out on 12 June 2088. Having 62 years as a residual term we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including legals.