There is no doubt about it a leasehold property in Sedbergh is a wasting asset as a result of the shortening lease. If the residual term has, over one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Sedbergh will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Sedbergh with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service gives you increased control over the value of your Sedbergh leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the landlord of her one bedroom flat in Sedbergh, Aimee started the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work was finalised in January 2009. The landlord’s costs were kept to an absolute minimum.
In 2009 we were phoned by Mrs Rachel Campbell who, having was assigned a lease of a one bedroom apartment in Sedbergh in April 2008. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Sedbergh with a long lease were valued around £261,600. The mid-range amount of ground rent was £60 billed yearly. The lease ended in 2077. Having 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 not including fees.
Mrs Abigail Khan owned a purpose-built flat in Sedbergh in November 2011. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable premises in Sedbergh with an extended lease were valued about £218,000. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed in 2088. Having 63 years left we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of legals.