As the length of the unexpired term of a Sedbergh residential lease diminished so does its value and therefore the value of your property. Where the residual term has, over 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Sedbergh will qualify for this right; nevertheless a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom 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 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Sedbergh,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sedbergh valuers.
During the course of the last few months Oliver, came dangerously close to the eighty-year mark with the lease on his studio flat in Sedbergh. In buying his flat 19 years ago, the unexpired term was of no importance. Fortunately, he recognised he needed to take action soon on a lease extension. Oliver was able to extend his lease just under the wire last May. Oliver and the freeholder via the managing agents eventually agreed on sum of £5,000 . If the lease had gone lower than 80 years, the premium would have become more costly by at least £900.
Last month we were e-mailed by Mr and Mrs. U Bell , who bought a one bedroom flat in Sedbergh in August 2009. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Sedbergh with an extended lease were valued around £232,800. The average ground rent payable was £45 billed per annum. The lease finished in 2091. Having 65 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.
Mrs V Harris acquired a purpose-built flat in Sedbergh in July 1995. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Similar residencies in Sedbergh with a long lease were worth £275,000. The mid-range amount of ground rent was £55 collected annually. The lease end date was on 11 April 2102. Taking into account 76 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.