Sandhurst leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Sandhurst will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain situations you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 Sandhurst can be a difficult process. We recommend you secure guidance from a conveyancer 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 a wealth of experience procuring Sandhurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Michael, started to get near to the 80-year mark with the lease on his first floor flat in Sandhurst. Having purchased his property two decades ago, the unexpired term was of little concern. Luckily, he noticed he needed to take action soon on a lease extension. Michael extended the lease just in the nick of time in April. Michael and the landlord eventually agreed on sum of £5,000 . If the lease had gone below 80 years, the figure would have escalated by at least £950.
In 2011 we were called by Mrs C Bell who, having owned a newly refurbished flat in Sandhurst in November 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Sandhurst with an extended lease were worth £166,800. The average ground rent payable was £50 invoiced yearly. The lease expiry date was in 2075. Having 50 years outstanding we calculated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.
In 2012 we were contacted by Mr and Mrs. J Cook who, having completed a garden flat in Sandhurst in March 2000. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical residencies in Sandhurst with a long lease were valued around £280,000. The average ground rent payable was £45 billed annually. The lease expired in 2095. Having 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.