The market value of a leasehold property in Great Sankey depends on how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the 80 year mark. Statute enables Great Sankey qualifying lessees to an additional term of ninety years over and above the remaining term, at a notional rent (no ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Great Sankey with in excess of one hundred 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 home. In such circumstances there is often little upside in purchasing the freehold 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancers that we work with procure Great Sankey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Benjamin was the the leasehold proprietor of a high value apartment in Great Sankey being marketed with a lease of fraction over 61 years remaining. Benjamin informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last Summer we were called by Mr and Mrs. V Leroy , who bought a garden flat in Great Sankey in August 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparable residencies in Great Sankey with a long lease were worth £240,600. The average amount of ground rent was £65 billed yearly. The lease ended on 18 October 2087. Given that there were 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus costs.
Last Summer we were called by Mr P Parker , who took over the lease of a one bedroom flat in Great Sankey in January 2003. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Identical flats in Great Sankey with 100 year plus lease were in the region of £179,200. The average ground rent payable was £55 collected monthly. The lease concluded in 2076. Having 51 years remaining we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.