There is no doubt about it a leasehold flat or house in Sandhurst is a wasting asset as a result of the shortening lease. Where the lease has, beyond 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Sandhurst will qualify for this right; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Sandhurst with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the freeholder of her purpose-built apartment in Sandhurst, Anna started the lease extension process just as the lease was approaching the crucial 80-year threshold. The lease extension was finalised in May 2012. The landlord’s fees were kept to an absolute minimum.
In 2013 we were e-mailed by Dr Arthur Torres who, having bought a one bedroom flat in Sandhurst in September 2010. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Identical residencies in Sandhurst with 100 year plus lease were valued around £250,400. The average amount of ground rent was £65 invoiced yearly. The lease ran out in 2089. Having 64 years outstanding we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including fees.
Mr Henry Díaz purchased a first floor apartment in Sandhurst in January 2008. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Sandhurst with 100 year plus lease were valued around £184,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded on 4 June 2078. Given that there were 53 years as a residual term we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.