The re-sale value of a leasehold property in Sanderstead depends on how long the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be finalised prior to the eighty year cut off point. Current legislation enables Sanderstead qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Sanderstead leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Luke owned a high value apartment in Sanderstead on the market with a lease of a little over 72 years unexpired. Luke on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Luke to invoke his statutory right. Luke procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2013 we were called by Dr George Collins who, having completed a purpose-built flat in Sanderstead in July 2004. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative flats in Sanderstead with 100 year plus lease were valued about £201,200. The average amount of ground rent was £55 billed annually. The lease ran out in 2081. Taking into account 56 years outstanding we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus expenses.
An example of a Freehold Enfranchisement case 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 affected 6 flats. The unexpired term was 78.32 years.