There is no doubt about it a leasehold flat or house in Sandwich is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. Many flat owners in Sandwich will meet the qualifying criteria; however a lawyer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Sandwich with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘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 upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Sandwich can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 in-depth market knowledge procuring Sandwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Kyle, came perilously close to the 80-year mark with the lease on his purpose- built flat in Sandwich. Having bought his flat two decades ago, the unexpired term was of minimal interest. Thankfully, he became aware that he needed to take action soon on Extending the lease. Kyle was able to extend his lease just under the wire last September. Kyle and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If the lease had gone lower than 80 years, the figure would have escalated by at least £1,150.
In 2013 we were contacted by Dr S Bailey who, having completed a one bedroom flat in Sandwich in August 2000. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Similar premises in Sandwich with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 collected per annum. The lease expired on 8 June 2103. Considering the 78 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.
Last Christmas we were e-mailed by Mr and Mrs. O López , who was assigned a lease of a studio apartment in Sandwich in January 2002. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparable residencies in Sandwich with a long lease were worth £191,000. The average ground rent payable was £65 invoiced monthly. The lease finished on 4 March 2083. Considering the 58 years unexpired we calculated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of costs.