The closer a residential lease in Sandbach nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Sandbach will qualify for this right; nevertheless a conveyancer will be able to confirm if you are eligible to extend your lease. 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 generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Sandbach leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold owner of a high value apartment in Sandbach being sold with a lease of fraction over fifty eight years remaining. Ibrahim on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2009 we were contacted by Dr Charlotte Walker who, having took over the lease of a one bedroom flat in Sandbach in October 2001. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparative flats in Sandbach with a long lease were worth £242,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease elapsed in 2092. Considering the 67 years left we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including legals.
Mr and Mrs. A Parker moved into a ground floor apartment in Sandbach in October 2007. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar properties in Sandbach with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced annually. The lease terminated on 5 August 2103. Having 78 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.