Sacriston leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Sacriston will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and steps to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Sacriston leasehold, as your property will be more valuable and marketable in respect 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.
Ali owned a 2 bedroom apartment in Sacriston being marketed with a lease of a few days over sixty years outstanding. Ali informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. 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 a more informed decision and deal with the matter and readily saleable.
Dr Lily González completed a first floor apartment in Sacriston in October 1995. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar properties in Sacriston with 100 year plus lease were worth £191,400. The mid-range ground rent payable was £55 invoiced annually. The lease terminated on 3 October 2080. Considering the 54 years outstanding we calculated the premium to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of costs.
Last Winter we were called by Mr and Mrs. D Ricardo , who purchased a one bedroom flat in Sacriston in October 1995. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Sacriston with an extended lease were valued around £295,000. The average amount of ground rent was £45 billed monthly. The lease terminated on 16 August 2100. Having 74 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.