As the length of the unexpired term of a Sandy domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, over one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Sandy will meet the qualifying criteria; however a conveyancer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Sandy with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Sandy can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience 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.
Last year Toby, started to get near to the 80-year threshold with the lease on his studio apartment in Sandy. Having purchased his home twenty years previously, the unexpired term was of minimal significance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. Toby arranged for a lease extension at the eleventh hour in June. Toby and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had fallen below eighty years, the price would have become more exhorbitant by a minimum £975.
In 2009 we were e-mailed by Dr Y Gómez who, having purchased a basement flat in Sandy in April 1995. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable homes in Sandy with 100 year plus lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced annually. The lease finished in 2094. Considering the 68 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
Last Christmas we were contacted by Dr V Brown , who moved into a recently refurbished apartment in Sandy in September 1996. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical flats in Sandy with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease lapsed on 9 January 2105. Given that there were 79 years outstanding we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.