Why you should start your Sandy lease extension
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Why you should start your Sandy lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/sandy">Sandy</a> leasehold property depreciates with the years remaining on the lease.
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Sandy residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
<h4>Sandy property with a lease extension is almost the same value as a freehold</h4>
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Leasehold properties in Sandy with more than one hundred years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it. <h4>Banks and Building Societies may not lend on a short lease</h4> Banks and building societies are making their criteria more stringent and many now require flats to have a minimum of sixty if not seventy years left once the mortgage has expired. Considering a number of flats in Sandy were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to get a mortgage.
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<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Godiva Mortgages</td>
<td> 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.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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Why use us for your lease extension in Sandy? </h4>
<p> Regardless of whether you are a tenant or a freeholder in Sandy,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sandy valuers.
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Sandy Lease Extension Case Summaries:
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<h5> Amber, Sandy, Bedfordshire,</h5>
<p> Trailing unsuccessful discussions with the landlord of her garden apartment in Sandy, Amber commenced the lease extension process as the eighty year mark was rapidly approaching. The legal work was finalised in March 2014. The freeholder’s costs were kept to an absolute minimum.
<h5>Sandy case:</h5>
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In 2012 we were phoned by Dr Katie Parker who, having was assigned a lease of a first floor flat in Sandy in February 2011. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar residencies in Sandy with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 billed every twelve months. The lease lapsed on 2 February 2083. Considering the 57 years remaining we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.
<h5>Sandy case:</h5>
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In 2014 we were called by Mr and Mrs. M Simon who, having purchased a garden flat in Sandy in May 2004. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar homes in Sandy with an extended lease were valued about £245,000. The mid-range ground rent payable was £50 collected annually. The lease concluded on 13 October 2094. Given that there were 68 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
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