The value of Sandringham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is below than eighty years
Leasehold premises in Sandringham with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| 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. |
Lease extensions in Sandringham can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Sandringham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Hunter, came dangerously close to the 80-year threshold with the lease on his ground floor flat in Sandringham. Having purchased his flat two decades ago, the unexpired term was of no significance. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Hunter extended the lease at the eleventh hour in April. Hunter and the freeholder subsequently settled on a premium of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £900.
Last Autumn we were approach by Mr and Mrs. P Bell , who moved into a one bedroom apartment in Sandringham in February 2012. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical properties in Sandringham with an extended lease were valued about £200,000. The average ground rent payable was £50 collected every twelve months. The lease ended in 2103. Taking into account 77 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
In 2010 we were phoned by Dr Alex Mitchell who, having acquired a first floor apartment in Sandringham in May 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable premises in Sandringham with an extended lease were in the region of £265,200. The average ground rent payable was £65 invoiced monthly. The lease expired on 11 March 2092. Having 66 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of expenses.