Sandringham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Sandringham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Sandringham you would be well advised to investigate if your lease has between seventy and 90 years left. There are good reasons why a Sandringham flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay
Leasehold premises in Sandringham with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Sandringham can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
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.
Subsequent to unsuccessful correspondence with the freeholder of her basement apartment in Sandringham, Daisy initiated the lease extension process just as the lease was approaching the all-important eighty-year threshold. The lease extension completed in October 2010. The landlord’s fees were negotiated to slightly above 550 pounds.
Last year we were e-mailed by Mr and Mrs. F Cook , who owned a basement flat in Sandringham in March 1996. The question was if we could approximate the price could be for a ninety year lease extension. Similar residencies in Sandringham with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 collected every twelve months. The lease lapsed on 27 November 2091. Taking into account 65 years outstanding we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus expenses.
Mr Luke Edwards completed a newly refurbished flat in Sandringham in July 1995. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative properties in Sandringham with 100 year plus lease were in the region of £191,400. The mid-range ground rent payable was £55 billed per annum. The lease terminated on 28 May 2080. Considering the 54 years outstanding we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 plus fees.