Sandy residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Sandy with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Sandy,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sandy valuers.
After lengthy discussions with the landlord of her one bedroom flat in Sandy, Catherine initiated the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work completed in February 2006. The landlord’s costs were kept to an absolute minimum.
Last August we were called by Ms E Cooper , who purchased a one bedroom flat in Sandy in July 2009. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical residencies in Sandy with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 collected quarterly. The lease concluded on 13 September 2082. Considering the 56 years remaining we calculated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including fees.
In 2013 we were called by Ms Phoebe Thompson who, having was assigned a lease of a studio flat in Sandy in March 1998. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparative homes in Sandy with a long lease were worth £242,600. The mid-range ground rent payable was £45 collected per annum. The lease terminated on 24 June 2093. Considering the 67 years remaining we calculated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus fees.