The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Sacriston have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give careful consideration before delaying your Sacriston lease extension. Shelving that expense today simply escalates the price you will eventually have to pay to extend the lease.
Leasehold premises in Sacriston with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you better control over the value of your Sacriston leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luke was the the leasehold proprietor of a conversion apartment in Sacriston being marketed with a lease of fraction over 72 years left. Luke informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Luke to invoke his statutory right. Luke procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
In 2010 we were approached by Mr and Mrs. B Adams who, having took over the lease of a studio flat in Sacriston in April 1998. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Sacriston with a long lease were worth £200,000. The average ground rent payable was £50 billed monthly. The lease terminated on 5 June 2102. Taking into account 77 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Last Winter we were contacted by Dr I Norbert , who completed a ground floor flat in Sacriston in October 2002. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar homes in Sacriston with a long lease were valued around £265,200. The average ground rent payable was £65 billed quarterly. The lease elapsed in 2091. Given that there were 66 years unexpired we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus fees.