On the balance of probabilities where you own a flat in Sedbergh you actually own a long leasehold interest over your property
Leasehold properties in Sedbergh with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Sedbergh leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Evan owned a high value apartment in Sedbergh on the market with a lease of just over fifty eight years remaining. Evan on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen 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 twenty five years thereafter. No ground rent would be payable on a lease extension were Evan to invoke his statutory right. Evan obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last month we were e-mailed by Mrs N Bernard , who took over the lease of a studio apartment in Sedbergh in October 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Sedbergh with 100 year plus lease were worth £246,800. The mid-range amount of ground rent was £60 collected annually. The lease ended on 26 July 2075. Considering the 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 plus fees.
Last Spring we were approach by Mr C Ali , who purchased a first floor apartment in Sedbergh in August 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Sedbergh with 100 year plus lease were in the region of £203,200. The mid-range amount of ground rent was £65 invoiced annually. The lease expired on 18 May 2086. Given that there were 61 years unexpired we approximated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of legals.