The market value of a leasehold property in Sandhurst is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed ahead of the eighty year mark. Current legislation enables Sandhurst qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Engaging our service gives you increased control over the value of your Sandhurst leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Owen was the the leasehold proprietor of a studio apartment in Sandhurst being sold with a lease of just over 72 years outstanding. Owen on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Owen to exercise his statutory right. Owen obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last month we were contacted by Dr W Howard , who completed a garden flat in Sandhurst in March 1998. The question was if we could approximate the price would be for a ninety year extension to my lease. Similar residencies in Sandhurst with a long lease were valued about £285,000. The average ground rent payable was £45 invoiced per annum. The lease concluded in 2098. Having 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
In 2014 we were phoned by Mr and Mrs. D Gómez who, having was assigned a lease of a recently refurbished apartment in Sandhurst in July 2004. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar properties in Sandhurst with a long lease were worth £233,200. The average amount of ground rent was £60 billed annually. The lease finished in 2087. Given that there were 61 years unexpired we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 not including legals.