Unfortunately that a Sacriston residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Sacriston property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term falls below eighty years, you will then be required to pay 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 lawyer will be able to clarify whether 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 instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Sacriston with over one hundred 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you better control over the value of your Sacriston leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her two bedroom flat in Sacriston, Tia initiated the lease extension process just as the lease was approaching the all-important eighty-year mark. The transaction was finalised in November 2005. The landlord’s costs were negotiated to about 600 GBP.
In 2009 we were approached by Mr and Mrs. L Lee who, having acquired a one bedroom flat in Sacriston in July 1996. We are asked if we could approximate the 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 £290,000. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish in 2097. Having 72 years remaining we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus legals.
Last August we were approach by Mr and Mrs. E Martinez , who was assigned a lease of a studio flat in Sacriston in September 2008. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative residencies in Sacriston with a long lease were worth £233,200. The mid-range ground rent payable was £60 billed annually. The lease terminated in 2086. Having 61 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 not including fees.