Unfortunately that a Sandgate residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Sandgate property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining falls below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Sandgate will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Sandgate with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Sandgate can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Sandgate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor owned a high value flat in Sandgate on the market with a lease of fraction over 59 years unexpired. Connor on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
In 2010 we were e-mailed by Mr and Mrs. O Thompson who, having was assigned a lease of a basement apartment in Sandgate in July 1999. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical properties in Sandgate with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed in 2082. Given that there were 57 years as a residual term we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.
Dr Sophia François owned a one bedroom apartment in Sandgate in July 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Sandgate with 100 year plus lease were valued about £245,000. The average ground rent payable was £50 collected monthly. The lease ended in 2093. Given that there were 68 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.