On the balance of probabilities if you own a flat in Sandy you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Sandy can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Sandy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the landlord of her studio apartment in Sandy, Isabella initiated the lease extension process just as the lease was approaching the all-important 80-year threshold. The lease extension completed in June 2008. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were phoned by Mrs Anna Phillips who, having took over the lease of a one bedroom apartment in Sandy in May 2001. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar flats in Sandy with an extended lease were in the region of £255,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded in 2094. Given that there were 70 years outstanding we estimated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 not including fees.
In 2011 we were e-mailed by Ms Stephanie Rivera who, having owned a one bedroom flat in Sandy in June 2012. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable residencies in Sandy with 100 year plus lease were worth £246,800. The mid-range ground rent payable was £60 collected per annum. The lease expired in 2074. Taking into account 50 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of fees.