Main reasons to commence your Sanderstead lease extension
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Why you should commence your Sanderstead lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/sanderstead">Sanderstead</a> leasehold property depreciates with the years remaining on the lease.
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Sanderstead residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
<h4>Sanderstead property with a lease extension is almost the same value as a freehold</h4>
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Leasehold premises in Sanderstead with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it. <h4>Mortgage lenders will not finance a property on a short lease</h4> Banks and Building Societies have set criteria when lending monies secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term goes under a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are wanting to remortgage your Sanderstead home.
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<tr><th>Lender</th>
<th> Requirement
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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What makes us experts in Sanderstead lease extensions?
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<p> Retaining our service will provide you enhanced 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 wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Sanderstead Lease Extension Case Studies:
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<h5> Abigail, Sanderstead, South London,</h5>
<p> In the wake of eight months of unsuccessful negotiations with the landlord of her two bedroom apartment in Sanderstead, Abigail initiated the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction completed in October 2007. The freeholder’s charges were restricted to less than 700 GBP.
<h5>Sanderstead case:</h5>
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In 2011 we were contacted by Dr P Garcia who, having bought a one bedroom apartment in Sanderstead in April 2009. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable premises in Sanderstead with a long lease were worth £300,000. The average ground rent payable was £50 billed annually. The lease end date was on 6 September 2102. Considering the 76 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
<div> <h5>Decision in Croydon</h5>
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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 term was 78.32 years.
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