Unfortunately that a Sandgate residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation 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. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Most leasehold owners in Sandgate will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Sandgate with over 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 property. In such situations there is often little upside in purchasing the freehold 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Sandgate lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After protracted correspondence with the freeholder of her first floor apartment in Sandgate, Amy initiated the lease extension process as the 80 year mark was swiftly approaching. The transaction was concluded in March 2009. The landlord’s charges were restricted to about 700 pounds.
Last year we were called by Mr and Mrs. I Garcia , who acquired a basement apartment in Sandgate in January 1995. The question was if we could approximate the price could be to prolong the lease by ninety years. Similar flats in Sandgate with a long lease were in the region of £261,600. The average ground rent payable was £60 invoiced yearly. The lease expired on 26 February 2078. Taking into account 52 years remaining we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 plus costs.
Last January we were called by Mr and Mrs. I Bailey , who was assigned a lease of a recently refurbished apartment in Sandgate in January 2010. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Sandgate with an extended lease were worth £218,000. The mid-range amount of ground rent was £45 collected yearly. The lease ran out on 27 May 2089. Having 63 years remaining we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.