Sanderstead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Sanderstead enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Sanderstead you should see if your lease has between 70 and 90 years remaining. There are good reasons why a Sanderstead flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Sanderstead with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Sanderstead,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sanderstead valuers.
Joshua owned a high value apartment in Sanderstead being marketed with a lease of a few days over 59 years remaining. Joshua on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Joshua to invoke his statutory right. Joshua procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2010 we were e-mailed by Dr V Evans who, having moved into a one bedroom apartment in Sanderstead in July 1999. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparative premises in Sanderstead with an extended lease were worth £243,000. The average amount of ground rent was £65 invoiced yearly. The lease ended on 4 February 2087. Given that there were 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Sanderstead property 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 residue of the current lease was 78.32 years.