With a residential leasehold premises in Sandy, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years remaining. Anyone in Sandy with a lease approaching 81 years remaining should seriously think of extending it sooner than later. When the lease term has less than eighty years outstanding, under the relevant legislation the landlord is entitled to calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 get professional help from a lawyer 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 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.
Trailing unsuccessful discussions with the landlord of her one bedroom apartment in Sandy, Bethany initiated the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction was concluded in August 2007. The freeholder’s charges were kept to an absolute minimum.
Dr Toby Ricardo acquired a one bedroom flat in Sandy in April 2011. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Sandy with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 collected monthly. The lease elapsed on 4 February 2100. Taking into account 74 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last March we were contacted by Mr and Mrs. N Smith , who owned a basement flat in Sandy in February 2011. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Identical residencies in Sandy with a long lease were worth £166,400. The mid-range ground rent payable was £60 billed quarterly. The lease came to a finish on 15 January 2080. Given that there were 54 years remaining we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.