Sandhurst leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Sandhurst residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Sandhurst you should check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Sandhurst leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Engaging our service will provide you increased control over the value of your Sandhurst leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Alfie, came very near to the eighty-year threshold with the lease on his garden apartment in Sandhurst. Having bought his home two decades ago, the unexpired term was of minimal concern. Luckily, he noticed he needed to take steps soon on a lease extension. Alfie arranged for a lease extension just under the wire last March. Alfie and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had slipped below 80 years, the premium would have gone up by a minimum £975.
Last year we were e-mailed by Mr and Mrs. A Flores , who owned a ground floor flat in Sandhurst in February 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Sandhurst with an extended lease were valued about £210,000. The average ground rent payable was £50 collected monthly. The lease elapsed in 2105. Having 80 years left we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.
Last Christmas we were approach by Mr and Mrs. B Rivera , who took over the lease of a basement flat in Sandhurst in January 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Sandhurst with a long lease were valued about £275,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended on 16 February 2094. Taking into account 69 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.