When it comes to residential leasehold property in Sandiacre, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Leasehold owners in Sandiacre with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has below 80 years outstanding, under the relevant legislation the landlord can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Sandiacre lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her studio flat in Sandiacre, Jasmine commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The legal work was concluded in January 2005. The landlord’s fees were kept to an absolute minimum.
Last June we were contacted by Dr M Peterson , who acquired a first floor apartment in Sandiacre in March 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Sandiacre with an extended lease were worth £184,000. The average amount of ground rent was £55 billed per annum. The lease elapsed on 9 January 2079. Taking into account 53 years as a residual term we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Last month we were e-mailed by Dr E Phillips , who owned a garden apartment in Sandiacre in February 2010. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Sandiacre with an extended lease were in the region of £290,000. The average ground rent payable was £45 billed every twelve months. The lease concluded on 26 July 2099. Considering the 73 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.