Sedbergh leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Sedbergh will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Sedbergh with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Sedbergh,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sedbergh valuers.
Two years ago Harry, came critically close to the 80-year threshold with the lease on his ground floor apartment in Sedbergh. Having purchased his property twenty years previously, the lease term was of minimal significance. by good luck, he became aware that he would soon be paying way over the odds for Extending the lease. Harry extended the lease just under the wire in January. Harry and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If he had missed the deadline, the amount would have escalated by a minimum £900.
Last Winter we were phoned by Mr and Mrs. C White , who owned a basement flat in Sedbergh in February 1997. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Similar residencies in Sedbergh with 100 year plus lease were valued around £235,200. The average ground rent payable was £45 invoiced per annum. The lease ended on 18 May 2091. Taking into account 66 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Last January we were called by Mr and Mrs. P Sharif , who completed a purpose-built flat in Sedbergh in April 1998. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Similar homes in Sedbergh with a long lease were worth £275,000. The average amount of ground rent was £55 billed quarterly. The lease expired on 28 October 2102. Considering the 77 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.