Great Sankey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Great Sankey enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Great Sankey you should investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Great Sankey,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Sankey valuers.
Ali was the the leasehold proprietor of a conversion flat in Great Sankey being marketed with a lease of just over 72 years outstanding. Ali on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Ali to invoke his statutory right. Ali obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2010 we were called by Mr Oscar Reed who, having owned a one bedroom apartment in Great Sankey in September 2006. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Great Sankey with a long lease were valued around £267,600. The mid-range amount of ground rent was £65 invoiced annually. The lease concluded on 21 January 2093. Given that there were 67 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus legals.
Last Autumn we were approach by Dr Max Williams , who completed a basement apartment in Great Sankey in September 1997. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative homes in Great Sankey with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £60 billed quarterly. The lease lapsed in 2082. Given that there were 56 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.