The re-sale value of a leasehold property in Sandy depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded in advance of the eighty year threshold. Current legislation entitles Sandy qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Sandy can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
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.
Off the back of protracted correspondence with the freeholder of her two bedroom flat in Sandy, Kayleigh started the lease extension process just as the lease was coming close to the critical eighty-year mark. The transaction completed in September 2011. The landlord’s costs were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. M Wright who, having purchased a first floor apartment in Sandy in August 1995. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical flats in Sandy with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease came to a finish on 26 September 2105. Considering the 79 years left we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.
In 2010 we were approached by Mr Ali Anderson who, having completed a studio flat in Sandy in August 2005. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative residencies in Sandy with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 billed annually. The lease finished on 20 March 2085. Taking into account 59 years unexpired we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.