Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Sandhurst. Inevitably, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying leaseholders in Sandhurst have the right to extend the lease for a further 90 years in accordance with statute. Please give careful deliberation before delaying your Sandhurst lease extension. Holding off that expense now simply increases the price you will eventually have to pay for a lease extension
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|Birmingham Midshires|| Minimum 70 years from the date of the mortgage.|
|National Westminster Bank|| Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|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. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Regardless of whether you are a tenant or a freeholder in Sandhurst,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sandhurst valuers.
In the wake of eight months of lengthy correspondence with the freeholder of her purpose-built apartment in Sandhurst, Morgan initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work completed in April 2014. The landlord’s costs were kept to an absolute minimum.
In 2011 we were approached by Mr David Johnson who, having bought a purpose-built flat in Sandhurst in May 1995. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Sandhurst with a long lease were worth £174,200. The mid-range amount of ground rent was £55 billed per annum. The lease ended in 2072. Taking into account 51 years outstanding we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.
In 2010 we were e-mailed by Mrs L Girard who, having owned a one bedroom flat in Sandhurst in February 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar flats in Sandhurst with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease finished on 9 July 2092. Given that there were 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.