The re-sale value of a leasehold property in Sandhurst depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised in advance of the 80 year mark. Current legislation enables Sandhurst qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Sandhurst with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
| 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.
Stanley was the the leasehold proprietor of a conversion apartment in Sandhurst on the market with a lease of a few days over sixty years left. Stanley informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Stanley to invoke his statutory right. Stanley procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last January we were phoned by Mr and Mrs. J Davis , who purchased a studio flat in Sandhurst in October 2012. 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. Similar residencies in Sandhurst with a long lease were in the region of £233,200. The average ground rent payable was £60 invoiced annually. The lease concluded in 2087. Considering the 61 years unexpired we estimated the premium to the landlord to extend the lease to be within £22,800 and £26,400 not including professional charges.
Ms Maisie Johnson bought a first floor apartment in Sandhurst in February 2012. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical premises in Sandhurst with an extended lease were worth £171,800. The average ground rent payable was £55 invoiced monthly. The lease concluded in 2076. Considering the 50 years remaining we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including expenses.