With a domestic leasehold property in Sandwich, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are less than eighty years left. Anyone in Sandwich with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. When a lease has less than 80 years left, under the relevant statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Sandwich with more than one hundred years remaining 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Sandwich,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sandwich valuers.
Daniel owned a conversion apartment in Sandwich on the market with a lease of a little over 59 years unexpired. Daniel informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr A Petit bought a first floor apartment in Sandwich in August 1997. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar flats in Sandwich with a long lease were worth £250,000. The average amount of ground rent was £50 collected every twelve months. The lease lapsed in 2095. Having 69 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Last Autumn we were contacted by Dr E Anderson , who acquired a first floor flat in Sandwich in August 2003. We are asked if we could estimate the premium would be to extend the lease by 90 years. Identical homes in Sandwich with an extended lease were worth £290,000. The average amount of ground rent was £60 invoiced yearly. The lease ran out in 2106. Having 80 years unexpired we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.