Sedbergh leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Sedbergh will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Sedbergh with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Sedbergh can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Sedbergh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Max was the the leasehold owner of a high value apartment in Sedbergh on the market with a lease of fraction over sixty years outstanding. Max on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Last Spring we were e-mailed by Mr Riley Morel , who acquired a purpose-built flat in Sedbergh in August 1998. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Identical homes in Sedbergh with a long lease were worth £218,000. The average ground rent payable was £45 invoiced monthly. The lease expiry date was on 18 November 2089. Given that there were 63 years left we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus legals.
Dr E André was assigned a lease of a newly refurbished apartment in Sedbergh in June 2003. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Sedbergh with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed on 25 February 2100. Taking into account 74 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.