Sacriston 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. It is the case that most Sacriston tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Sacriston you should see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Lease extensions in Sacriston can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Sacriston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her one bedroom flat in Sacriston, Daisy commenced the lease extension process just as the lease was approaching the critical eighty-year mark. The legal work was concluded in April 2014. The freeholder’s fees were negotiated to a tad over 700 GBP.
Last Winter we were phoned by Mr and Mrs. T Kelly , who moved into a basement apartment in Sacriston in June 2003. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical properties in Sacriston with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 billed every twelve months. The lease ran out on 16 October 2084. Having 58 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.
Last Summer we were e-mailed by Mr and Mrs. W Ricardo , who took over the lease of a one bedroom apartment in Sacriston in January 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Sacriston with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded on 3 September 2104. Considering the 78 years remaining we estimated the premium to the freeholder to extend the lease to be within £7,600 and £8,800 exclusive of fees.