Sandringham leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease drops below 80 years - otherwise a higher amount will be due. Leasehold owners in Sandringham will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you better control over the value of your Sandringham leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Sam, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Sandringham. In buying his home 18 years ago, the lease term was of little significance. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. Sam was able to extend his lease just under the wire last August. Sam and the freeholder via the managing agents ultimately settled on a premium of £6,000 . If he not met the deadline, the price would have become more exhorbitant by at least £900.
Mrs Laura Bennett completed a newly refurbished flat in Sandringham in May 2003. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar premises in Sandringham with an extended lease were worth £267,600. The average amount of ground rent was £65 billed every twelve months. The lease came to a finish on 9 June 2092. Considering the 67 years unexpired we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including expenses.
Dr S Morel completed a studio flat in Sandringham in May 2005. The question was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable premises in Sandringham with an extended lease were worth £206,200. The average amount of ground rent was £60 collected monthly. The lease ran out in 2081. Having 56 years remaining we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.