Sacriston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly 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 ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Sacriston you should see if your lease has between seventy and 90 years left. There are good reasons why a Sacriston leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Sacriston with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service will provide you enhanced control over the value of your Sacriston leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Sebastian, started to get close to the 80-year threshold with the lease on his ground floor flat in Sacriston. Having purchased his flat two decades ago, the lease term was of little significance. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Sebastian extended the lease at the eleventh hour in April. Sebastian and the freeholder subsequently settled on a premium of £5,500 . If he had missed the deadline, the figure would have increased by a minimum £1,125.
Dr Oliver Rivera took over the lease of a one bedroom apartment in Sacriston in November 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Sacriston with a long lease were valued around £205,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded on 3 January 2104. Considering the 78 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 plus fees.
Last year we were approach by Ms Rachel Adams , who completed a garden flat in Sacriston in April 2009. The question was if we could estimate the price would be to prolong the lease by ninety years. Similar flats in Sacriston with an extended lease were worth £267,600. The mid-range ground rent payable was £65 billed annually. The lease finished in 2093. Having 67 years unexpired we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus legals.