Sandown leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Sandown will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Santander | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Sandown,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 Sandown valuers.
Jasper owned a 2 bedroom apartment in Sandown on the market with a lease of a little over 61 years unexpired. Jasper informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Last Autumn we were approach by Dr E Wright , who took over the lease of a first floor flat in Sandown in June 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable premises in Sandown with a long lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out on 28 September 2103. Given that there were 77 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
Mrs S Allen was assigned a lease of a newly refurbished apartment in Sandown in September 1996. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative premises in Sandown with a long lease were valued around £260,200. The mid-range amount of ground rent was £65 collected quarterly. The lease concluded in 2092. Considering the 66 years left we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.