Chances are that where you own a flat in Sedbergh you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Sedbergh leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Adam was the the leasehold owner of a conversion flat in Sedbergh on the market with a lease of just over 59 years unexpired. Adam informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Adam to invoke his statutory right. Adam obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last year we were contacted by Dr Kyle Murphy , who completed a basement flat in Sedbergh in September 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Sedbergh with an extended lease were valued around £270,000. The average ground rent payable was £55 billed monthly. The lease ended on 6 May 2100. Taking into account 74 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
Last March we were called by Mr Jack González , who owned a first floor flat in Sedbergh in October 2012. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable properties in Sedbergh with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 collected quarterly. The lease ran out on 22 April 2080. Considering the 54 years remaining we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of expenses.