Unfortunately that a Sacriston residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Sacriston property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining dips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Sacriston will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Sacriston with over one hundred years left on the lease are sometimes referred to as ‘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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Sacriston leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the landlord of her ground floor flat in Sacriston, Katie initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work completed in August 2009. The landlord’s costs were kept to an absolute minimum.
Mrs Ashleigh Howard moved into a one bedroom flat in Sacriston in August 2004. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative homes in Sacriston with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease end date was on 4 August 2096. Taking into account 70 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
In 2013 we were called by Mr and Mrs. Y Watson who, having moved into a studio flat in Sacriston in May 1998. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Similar flats in Sacriston with 100 year plus lease were worth £223,400. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed on 1 November 2085. Taking into account 59 years left we estimated the premium to the landlord to extend the lease to be between £27,600 and £31,800 plus costs.