With a long leasehold property in Sandbach, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years left. Residents in Sandbach with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has fewer than eighty years outstanding, under the relevant statute the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Sandbach with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Sandbach leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Freddie was the the leasehold owner of a high value apartment in Sandbach being sold with a lease of a little over 72 years unexpired. Freddie on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Dr Ashleigh Vincent completed a one bedroom flat in Sandbach in January 1995. The question was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparative residencies in Sandbach with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 billed yearly. The lease ran out in 2099. Taking into account 73 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Mr and Mrs. G Evans bought a ground floor flat in Sandbach in June 2005. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Similar flats in Sandbach with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 collected quarterly. The lease ran out in 2079. Taking into account 53 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of expenses.