For those whose Sandy home is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| 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 secure guidance from a conveyancing solicitor and surveyor 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 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.
In 2014 Hunter, came very close to the eighty-year threshold with the lease on his one bedroom flat in Sandy. In buying his property 19 years previously, the lease term was of no bearing. Fortunately, he realised he needed to take action soon on Extending the lease. Hunter was able to extend his lease just in the nick of time in July. Hunter and the landlord subsequently settled on an amount of £6,000 . If he not met the deadline, the price would have become more costly by a minimum £1,050.
Mr Jake Stewart purchased a one bedroom apartment in Sandy in November 2005. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical residencies in Sandy with an extended lease were worth £200,800. The mid-range ground rent payable was £65 billed yearly. The lease end date was on 5 February 2082. Given that there were 60 years unexpired we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including fees.
Mr Ibrahim Morris was assigned a lease of a first floor flat in Sandy in May 2012. We are asked if we could approximate the price could be for a ninety year lease extension. Similar flats in Sandy with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expired on 8 September 2093. Considering the 71 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.