With a long leasehold premises in Sandwich, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years remaining. Anyone in Sandwich with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has fewer than 80 years left, under the current Act the freeholder can calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Sandwich with more than 100 years unexpired 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Sandwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Ali, came perilously close to the eighty-year threshold with the lease on his purpose- built flat in Sandwich. In buying his property twenty years ago, the unexpired term was of minimal significance. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Ali arranged for a lease extension just under the wire last August. Ali and the freeholder via the management company in the end settled on an amount of £5,500 . If the lease had descended below 80 years, the premium would have become more exhorbitant by at least £900.
Last Summer we were e-mailed by Dr Ibrahim Wright , who was assigned a lease of a purpose-built apartment in Sandwich in July 2011. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Similar properties in Sandwich with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected quarterly. The lease termination date was in 2092. Considering the 66 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
Dr H Ward was assigned a lease of a one bedroom apartment in Sandwich in February 2004. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical residencies in Sandwich with a long lease were valued around £280,000. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed in 2103. Having 77 years outstanding we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.