Top reasons for Sandhurst lease extension
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Main reasons to start your Sandhurst lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/sandhurst">Sandhurst</a> leasehold property depreciates with the years remaining on the lease.
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<p> The market value of a leasehold property in Sandhurst depends on how long the lease has remaining. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be finalised in advance of the 80 year mark. Leasehold Reform legislation entitles Sandhurst qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension. <h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold premises in Sandhurst with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it. <h4>Lenders may decide not to lend on a short lease</h4> Almost all mortgage companies will not lend on a lease with less than seventy years remaining - although this varies from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Sandhurst property being difficult to sell or remortgage. <p>
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<td>Accord Mortgages</td>
<td> 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.
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<td>Coventry Building Society</td>
<td> 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.
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<td>Godiva Mortgages</td>
<td> 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.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<h4> Get in touch with one of our Sandhurst lease extension solicitors or enfranchisement solicitors
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<p> 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 relation to the lease length should you want to sell.
The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Sandhurst Lease Extension Case Studies:
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<h5> Ellie, Sandhurst, Berkshire,</h5>
<p> Subsequent to lengthy negotiations with the landlord of her one bedroom flat in Sandhurst, Ellie started the lease extension process as the 80 year mark was quickly coming. The legal work was concluded in February 2013. The freeholder’s costs were kept to an absolute minimum.
<h5>Sandhurst case:</h5>
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In 2014 we were phoned by Dr Nathaniel Davies who, having moved into a ground floor flat in Sandhurst in February 2002. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparable flats in Sandhurst with a long lease were valued about £198,800. The average ground rent payable was £55 billed monthly. The lease expired in 2081. Having 55 years unexpired we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including costs.
<h5>Sandhurst case:</h5>
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In 2009 we were phoned by Mr and Mrs. K Howard who, having purchased a ground floor apartment in Sandhurst in May 2012. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative flats in Sandhurst with 100 year plus lease were valued around £295,000. The average amount of ground rent was £50 collected quarterly. The lease terminated on 5 May 2101. Given that there were 75 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
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