The market value of Sandbach leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years
Leasehold premises in Sandbach with in excess of one hundred years unexpired 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder 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.
Kian owned a high value apartment in Sandbach on the market with a lease of a little over fifty eight years left. Kian on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kian to invoke his statutory right. Kian obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2012 we were approached by Mr and Mrs. I Wood who, having acquired a garden flat in Sandbach in May 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Sandbach with an extended lease were valued about £208,200. The average ground rent payable was £65 billed annually. The lease ran out in 2087. Considering the 61 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of expenses.
Last Summer we were called by Mrs Alice Parker , who moved into a newly refurbished apartment in Sandbach in October 2007. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical flats in Sandbach with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 invoiced annually. The lease elapsed on 6 August 2098. Taking into account 72 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.