Unfortunately that a Sedbergh residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Sedbergh property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be due. Most flat owners in Sedbergh will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Using our service gives you better 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Owen owned a 2 bedroom flat in Sedbergh on the market with a lease of just over 61 years outstanding. Owen informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2009 we were contacted by Mr Omar Fournier who, having took over the lease of a garden apartment in Sedbergh in October 2003. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Sedbergh with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 billed annually. The lease terminated on 4 April 2080. Taking into account 54 years remaining we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus legals.
Mr and Mrs. M Morgan owned a newly refurbished flat in Sedbergh in June 2004. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Sedbergh with a long lease were valued around £232,800. The mid-range amount of ground rent was £45 billed per annum. The lease termination date was in 2091. Having 65 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.