Unfortunately that a Sedbergh residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Sedbergh property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Sedbergh will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Sedbergh with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with undertake Sedbergh lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Leo was the the leasehold owner of a studio flat in Sedbergh being marketed with a lease of just over fifty eight years left. Leo informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to invoke his statutory right. Leo procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Mr and Mrs. H Wright took over the lease of a garden flat in Sedbergh in April 1999. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Sedbergh with a long lease were worth £280,000. The average ground rent payable was £55 invoiced monthly. The lease finished on 28 July 2103. Given that there were 77 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.
Dr Leah Baker bought a basement apartment in Sedbergh in March 2011. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical residencies in Sedbergh with an extended lease were valued about £183,600. The average amount of ground rent was £65 collected quarterly. The lease lapsed on 21 June 2083. Considering the 57 years left we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.