The market value of a leasehold property in Sandbach depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that formalities can be addressed prior to the eighty year mark. Statute entitles Sandbach qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Sandbach with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Sandbach,the lease extension solicitors that we work with will always be willing 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.
After lengthy discussions with the landlord of her first floor flat in Sandbach, Natasha commenced the lease extension process as the 80 year deadline was quickly nearing. The lease extension completed in October 2012. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were phoned by Mr and Mrs. L Murphy , who completed a newly refurbished apartment in Sandbach in September 2012. The question was if we could approximate the price would likely be to extend the lease by an additional years. Similar residencies in Sandbach with a long lease were worth £280,000. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed on 13 May 2103. Given that there were 77 years left we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.
Ms J Parker completed a purpose-built flat in Sandbach in May 2010. The question was if we could approximate the premium could be to prolong the lease by ninety years. Comparative properties in Sandbach with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 billed per annum. The lease finished on 2 September 2083. Taking into account 57 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus professional charges.