Chances are that if you own a flat in Sandhurst you actually own a long leasehold interest over your property
Leasehold residencies in Sandhurst with more than one hundred years unexpired on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you better control over the value of your Sandhurst leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Thomas, came perilously near to the 80-year mark with the lease on his ground floor apartment in Sandhurst. Having bought his property two decades ago, the lease term was of no bearing. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Thomas arranged for a lease extension just under the wire in August. Thomas and the landlord ultimately agreed on sum of £5,500 . If the lease had gone to less than eighty years, the premium would have increased by at least £900.
Last Summer we were e-mailed by Ms Danielle Sharif , who owned a one bedroom apartment in Sandhurst in January 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Sandhurst with a long lease were in the region of £223,400. The mid-range amount of ground rent was £60 collected quarterly. The lease termination date was in 2085. Having 59 years left we calculated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus legals.
In 2013 we were e-mailed by Mr Jamie Vincent who, having bought a recently refurbished flat in Sandhurst in November 1999. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative premises in Sandhurst with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease came to a finish on 7 April 2105. Given that there were 79 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.