Sanderstead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Sanderstead enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Sanderstead you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Sanderstead leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the landlord of her purpose-built flat in Sanderstead, Lucy initiated the lease extension process as the eighty year threshold was quickly approaching. The lease extension completed in July 2006. The freeholder’s costs were negotiated to below 500 pounds.
In 2009 we were contacted by Mrs J Scott who, having moved into a garden apartment in Sanderstead in June 2010. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Similar properties in Sanderstead with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 collected monthly. The lease elapsed on 23 November 2083. Taking into account 57 years unexpired we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including legals.
An example of a Freehold Enfranchisement case for a Sanderstead residence is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case was in relation to 6 flats. The unexpired term was 78.32 years.