Sandhurst leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Sandhurst tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Sandhurst you must investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Sandhurst with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
Lease extensions in Sandhurst can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Sandhurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kian owned a studio flat in Sandhurst being sold with a lease of a few days over 72 years remaining. Kian informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Kian to exercise his statutory right. Kian procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2014 we were contacted by Mrs S Peterson who, having moved into a garden apartment in Sandhurst in January 1995. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable premises in Sandhurst with a long lease were valued around £208,600. The mid-range amount of ground rent was £60 collected yearly. The lease lapsed in 2083. Taking into account 57 years outstanding we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
Last Spring we were phoned by Dr V Carter , who owned a studio flat in Sandhurst in August 2007. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable premises in Sandhurst with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expired in 2103. Given that there were 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.