Sanderstead leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher amount will be due. Flat owners in Sanderstead will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Sanderstead,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sanderstead valuers.
Ali was the the leasehold proprietor of a 2 bedroom flat in Sanderstead being sold with a lease of fraction over fifty eight years unexpired. Ali informally approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ali to invoke his statutory right. Ali obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last year we were e-mailed by Mr Aaron Norbert , who purchased a one bedroom flat in Sanderstead in January 2011. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative residencies in Sanderstead with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 invoiced yearly. The lease expiry date was in 2092. Taking into account 67 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 plus fees.
An example of a Freehold Enfranchisement decision for a Sanderstead premises is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case related to 6 flats. The unexpired term as at the valuation date was 78.32 years.