With a residential leasehold property in Sandiacre, you effectively rent it for a certain period of time. In recent years 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. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years remaining. Leasehold owners in Sandiacre with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has below eighty years remaining, under the current Act the freeholder can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Sandiacre leasehold, as your property will be more valuable and saleable in terms 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.
Off the back of lengthy correspondence with the landlord of her basement apartment in Sandiacre, Mia started the lease extension process just as the lease was nearing the all-important 80-year threshold. The legal work completed in March 2015. The landlord’s fees were restricted to about 600 pounds.
In 2012 we were e-mailed by Dr K Walker who, having moved into a studio flat in Sandiacre in April 2006. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Identical flats in Sandiacre with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2077. Taking into account 51 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
In 2009 we were approached by Mr and Mrs. E Clark who, having bought a recently refurbished apartment in Sandiacre in June 1997. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical residencies in Sandiacre with a long lease were worth £285,000. The average amount of ground rent was £45 invoiced monthly. The lease lapsed on 18 March 2097. Given that there were 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.