As the length of the unexpired term of a Sandy domestic lease lessens so does its value and therefore the value of your property. If the lease has, in excess of one hundred years remaining then this decrease may be of little impact however 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 termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner as opposed to later. Most flat owners in Sandy will qualify for this right; nevertheless a lawyer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Sandy with in excess of one hundred years remaining 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 situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Sandy can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 procuring Sandy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful negotiations with the landlord of her garden apartment in Sandy, Jennifer commenced the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction was finalised in June 2010. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were contacted by Mr and Mrs. E González , who moved into a purpose-built flat in Sandy in April 2007. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar residencies in Sandy with 100 year plus lease were in the region of £191,000. The average amount of ground rent was £65 invoiced yearly. The lease concluded in 2083. Taking into account 58 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 plus legals.
Mr and Mrs. A García acquired a recently refurbished flat in Sandy in June 2011. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Sandy with a long lease were worth £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed in 2094. Having 69 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.