The market value of a leasehold property in Sandiacre depends on how long the lease has left to run. If it is close to or less than 80 years you should foresee 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 a lease still has 82 years remaining so that formalities can be finalised well before the 80 year mark. Statute enables Sandiacre qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Sandiacre with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Sandiacre,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sandiacre valuers.
Following lengthy negotiations with the freeholder of her first floor flat in Sandiacre, Mia initiated the lease extension process as the 80 year deadline was rapidly coming. The lease extension was finalised in February 2015. The freeholder’s fees were negotiated to under four hundred GBP.
Mr and Mrs. L Gómez completed a purpose-built flat in Sandiacre in June 2005. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical properties in Sandiacre with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease concluded on 24 November 2101. Given that there were 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
Dr Hunter Parker took over the lease of a ground floor flat in Sandiacre in January 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable flats in Sandiacre with 100 year plus lease were valued around £250,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease ended on 12 August 2090. Having 64 years left we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.