Sandwich leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Sandwich will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Sandwich with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Sandwich,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 experience and the close ties they enjoy with Sandwich valuers.
Trailing lengthy negotiations with the freeholder of her purpose-built apartment in Sandwich, Chantelle initiated the lease extension process as the 80 year mark was fast advancing. The transaction was finalised in March 2012. The landlord’s fees were kept to an absolute minimum.
Last Spring we were approach by Mrs P Morgan , who completed a basement apartment in Sandwich in October 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Sandwich with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 collected annually. The lease finished on 27 February 2096. Considering the 71 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
In 2014 we were contacted by Mr Reuben Green who, having was assigned a lease of a basement flat in Sandwich in September 1998. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Comparable homes in Sandwich with 100 year plus lease were in the region of £254,200. The average ground rent payable was £60 invoiced annually. The lease ran out in 2076. Given that there were 51 years unexpired we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of costs.