The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Sandy may extend the lease for an additional 90 years under statute. Please think carefully before delaying your Sandy lease extension. Postponing that expense now simply escalates the premium you will ultimately be required to pay for a lease extension.
Leasehold residencies in Sandy with over 100 years outstanding 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with procure Sandy lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of protracted negotiations with the landlord of her first floor flat in Sandy, Hollie commenced the lease extension process as the eighty year mark was rapidly approaching. The lease extension was finalised in November 2009. The landlord’s charges were restricted to slightly above 550 pounds.
Mr R Allen acquired a studio flat in Sandy in March 1996. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative residencies in Sandy with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease terminated in 2102. Given that there were 77 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.
Last Summer we were phoned by Mrs Anna David , who owned a basement flat in Sandy in October 1995. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative residencies in Sandy with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 collected quarterly. The lease expired in 2082. Taking into account 57 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.