The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Sanderstead can extend the lease for an additional 90 years under legislation. Please give careful consideration before delaying your Sanderstead lease extension. Shelving the costs now simply escalates the price you will eventually have to pay to extend the lease.
Leasehold premises in Sanderstead with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Sanderstead,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sanderstead valuers.
Lewis owned a 2 bedroom flat in Sanderstead on the market with a lease of a few days over 72 years left. Lewis on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Lewis to exercise his statutory right. Lewis obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2010 we were approached by Mrs W Petit who, having moved into a newly refurbished apartment in Sanderstead in September 2001. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative homes in Sanderstead with 100 year plus lease were in the region of £166,800. The average amount of ground rent was £50 collected yearly. The lease expired in 2076. Given that there were 50 years left we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of legals.
An example of a Freehold Enfranchisement decision for a Sanderstead flat 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 number of years remaining on the existing lease(s) was 78.32 years.