The market value of a leasehold property in Sandbach depends on how long the lease has left to run. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed prior to the 80 year cut off point. Statute enables Sandbach qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Sandbach with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Sandbach can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Sandbach lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Callum, came critically near to the 80-year threshold with the lease on his leasehold apartment in Sandbach. In buying his flat two decades ago, the length of the lease was of minimal importance. Thankfully, he recognised he needed to take steps soon on a lease extension. Callum extended the lease just in the nick of time last September. Callum and the landlord in the end agreed on a premium of £5,500 . If the lease had slid to less than eighty years, the price would have become more exhorbitant by at least £875.
Last February we were contacted by Mr and Mrs. M Díaz , who was assigned a lease of a studio apartment in Sandbach in October 2002. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparable properties in Sandbach with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 invoiced monthly. The lease came to a finish on 16 February 2101. Taking into account 75 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
In 2013 we were contacted by Mr and Mrs. G Garcia who, having purchased a first floor flat in Sandbach in October 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable premises in Sandbach with a long lease were valued around £173,800. The average ground rent payable was £60 collected every twelve months. The lease came to a finish in 2081. Having 55 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.