As the length of the unexpired term of a Sandbach domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Sandbach will meet the qualifying criteria; however a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harrison owned a high value flat in Sandbach being sold with a lease of a few days over 59 years unexpired. Harrison on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of 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 Harrison to exercise his statutory right. Harrison obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
Mr and Mrs. K Mason acquired a ground floor flat in Sandbach in October 2008. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar properties in Sandbach with a long lease were worth £290,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease came to a finish in 2106. Given that there were 80 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
Mrs Lauren Alexander moved into a studio flat in Sandbach in March 2009. The question was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar homes in Sandbach with an extended lease were valued about £200,800. The mid-range ground rent payable was £65 billed yearly. The lease lapsed in 2086. Taking into account 60 years unexpired we approximated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including costs.