With a domestic leasehold premises in Sandhurst, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Leasehold owners in Sandhurst with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has fewer than 80 years outstanding, under the current statute the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Sandhurst,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sandhurst valuers.
Mason owned a high value flat in Sandhurst being sold with a lease of just over 59 years remaining. Mason on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Dr Lucas Hall owned a first floor flat in Sandhurst in March 2012. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparable premises in Sandhurst with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 billed every twelve months. The lease finished on 25 July 2077. Having 51 years outstanding we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.
Last August we were called by Mrs Jennifer Baker , who bought a one bedroom flat in Sandhurst in November 2006. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Sandhurst with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease elapsed on 21 October 2097. Given that there were 71 years remaining we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.