The re-sale value of a leasehold property in Sedbergh depends on how long the lease has remaining. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised prior to the 80 year mark. Current legislation enables Sedbergh qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with over 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 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Sedbergh can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Last Summer Freddie, started to get close to the eighty-year mark with the lease on his leasehold apartment in Sedbergh. Having bought his home two decades ago, the lease term was of minimal relevance. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Freddie extended the lease just in the nick of time in May. Freddie and the freeholder via the managing agents eventually settled on sum of £5,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £975.
Last May we were called by Dr C Díaz , who moved into a ground floor flat in Sedbergh in February 2007. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Identical premises in Sedbergh with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 billed annually. The lease expired on 21 January 2077. Given that there were 51 years unexpired we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including expenses.
In 2012 we were approached by Mr and Mrs. V King who, having acquired a garden apartment in Sedbergh in October 2005. The question was if we could approximate the price would be for a 90 year lease extension. Identical residencies in Sedbergh with an extended lease were valued around £215,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ended on 13 January 2088. Having 62 years outstanding we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.