When it comes to long leasehold property in Sacriston, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Sacriston with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When the lease term has under 80 years remaining, under the relevant legislation the freeholder can calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Sacriston with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
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 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.
Following lengthy discussions with the landlord of her first floor apartment in Sacriston, Jade started the lease extension process as the 80 year deadline was fast nearing. The legal work was concluded in June 2009. The landlord’s fees were kept to an absolute minimum.
In 2009 we were e-mailed by Mr and Mrs. G Martinez who, having bought a first floor flat in Sacriston in March 2002. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Sacriston with an extended lease were worth £189,000. The average ground rent payable was £55 collected annually. The lease elapsed on 20 May 2078. Taking into account 53 years remaining we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.
Last Spring we were e-mailed by Ms A Hill , who bought a basement flat in Sacriston in September 2006. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable homes in Sacriston with an extended lease were worth £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease expired in 2098. Given that there were 73 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.