With a residential leasehold premises in Sandy, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Leasehold owners in Sandy with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has below 80 years left, under the current statute the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Sandy with more than 100 years unexpired 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Sandy can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
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 protracted negotiations with the freeholder of her first floor apartment in Sandy, Anna started the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was finalised in June 2006. The landlord’s fees were restricted to under 600 pounds.
Mr and Mrs. O Garcia completed a purpose-built flat in Sandy in April 2007. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparative homes in Sandy with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 billed per annum. The lease ran out in 2079. Having 53 years remaining we approximated the premium to the landlord to extend the lease to be between £37,100 and £42,800 not including fees.
Last Christmas we were called by Mr Adam Rogers , who moved into a garden apartment in Sandy in February 1999. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar flats in Sandy with a long lease were valued around £225,400. The average ground rent payable was £45 invoiced quarterly. The lease finished in 2090. Considering the 64 years unexpired we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including professional charges.