The closer a domestic lease in Sandhurst gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Sandhurst will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Engaging our service will provide you increased control over the value of your Sandhurst leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Thomas, came perilously near to the 80-year threshold with the lease on his purpose- built flat in Sandhurst. In buying his home 19 years ago, the length of the lease was of no interest. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Thomas arranged for a lease extension just ahead of time in May. Thomas and the landlord subsequently agreed on an amount of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £1,075.
Last Winter we were contacted by Ms Millie Petit , who owned a one bedroom apartment in Sandhurst in June 1998. We are asked if we could estimate the premium could be to extend the lease by an additional years. Similar flats in Sandhurst with a long lease were in the region of £206,200. The mid-range ground rent payable was £55 collected per annum. The lease expired on 21 April 2082. Taking into account 56 years outstanding we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.
In 2009 we were e-mailed by Mrs K Khan who, having bought a one bedroom flat in Sandhurst in June 2000. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar premises in Sandhurst with an extended lease were valued about £300,000. The mid-range ground rent payable was £50 billed annually. The lease finished on 16 September 2102. Given that there were 76 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.