The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Sanderstead can extend the lease for a further 90 years under statute. Please think carefully before delaying your Sanderstead lease extension. Shelving that expense today simply escalates the premium you will eventually be required to pay for a lease extension.
Leasehold residencies in Sanderstead with more than one hundred years unexpired 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | 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 |
Irrespective of whether you are a tenant or a freeholder in Sanderstead,the lease extension solicitors 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.
Trailing protracted negotiations with the freeholder of her ground floor apartment in Sanderstead, Holly started the lease extension process as the 80 year deadline was swiftly nearing. The legal work completed in September 2009. The landlord’s fees were kept to an absolute minimum.
Mr Leo Anderson purchased a garden flat in Sanderstead in February 2003. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Identical residencies in Sanderstead with a long lease were in the region of £223,400. The average amount of ground rent was £60 billed yearly. The lease ran out on 11 May 2085. Having 59 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal 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.