Sedbergh leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Sedbergh residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Sedbergh you should check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Sedbergh lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Sebastian was the the leasehold proprietor of a studio flat in Sedbergh on the market with a lease of just over fifty eight years left. Sebastian on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Christmas we were phoned by Dr Stanley Mason , who acquired a one bedroom flat in Sedbergh in August 1998. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical properties in Sedbergh with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 billed annually. The lease expired in 2083. Considering the 57 years unexpired we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.
Ms M David took over the lease of a ground floor flat in Sedbergh in April 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Sedbergh with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced annually. The lease came to a finish on 16 January 2094. Taking into account 68 years unexpired we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 not including costs.