The value of Sandy leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the remaining term is less than eighty years
Leasehold residencies in Sandy with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Sandy,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sandy valuers.
Logan owned a high value apartment in Sandy on the market with a lease of a little over sixty years left. Logan on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Logan to invoke his statutory right. Logan obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
In 2012 we were called by Mr and Mrs. M Martin who, having took over the lease of a basement apartment in Sandy in February 2005. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative residencies in Sandy with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ended in 2101. Taking into account 75 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
In 2010 we were approached by Mr and Mrs. P Mason who, having moved into a one bedroom apartment in Sandy in May 2000. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Comparable properties in Sandy with an extended lease were valued about £168,800. The average ground rent payable was £60 billed quarterly. The lease concluded in 2081. Having 55 years outstanding we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.