Sedbergh leases on residential properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Sedbergh will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Sedbergh with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Sedbergh leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jacob, started to get close to the eighty-year mark with the lease on his ground floor apartment in Sedbergh. Having bought his flat 19 years ago, the lease term was of minimal concern. As luck would have it, he realised he would imminently be paying way over the odds for a lease extension. Jacob arranged for a lease extension just under the wire in September. Jacob and the landlord subsequently agreed on an amount of £6,000 . If he failed to meet the deadline, the premium would have increased by at least £1,075.
Last Winter we were phoned by Mr and Mrs. G Davis , who owned a basement flat in Sedbergh in August 2007. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Similar residencies in Sedbergh with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 billed yearly. The lease ran out on 17 November 2095. Given that there were 69 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
Last year we were e-mailed by Mr T Mason , who bought a one bedroom flat in Sedbergh in November 2000. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Identical flats in Sedbergh with an extended lease were valued around £290,000. The average ground rent payable was £60 invoiced per annum. The lease terminated in 2106. Having 80 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.