On the balance of probabilities where you own a flat in Sandbach you actually own a long leasehold interest over your property
Leasehold residencies in Sandbach with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Sandbach,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sandbach valuers.
Last Christmas Jonathan, started to get near to the 80-year mark with the lease on his two bedroom apartment in Sandbach. In buying his flat two decades ago, the length of the lease was of little importance. Thankfully, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Jonathan was able to extend his lease just under the wire in January. Jonathan and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If he not met the deadline, the amount would have escalated by a minimum £1,075.
Mr and Mrs. A González completed a one bedroom apartment in Sandbach in January 2010. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative homes in Sandbach with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 billed yearly. The lease concluded on 4 January 2095. Considering the 69 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Last Summer we were called by Mr and Mrs. E Girard , who took over the lease of a basement flat in Sandbach in April 2000. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable homes in Sandbach with an extended lease were in the region of £290,000. The average amount of ground rent was £60 collected yearly. The lease elapsed on 24 November 2106. Considering the 80 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.