Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Sedbergh. Clearly, the length of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Sedbergh have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. You should give due consideration before putting off your Sedbergh lease extension. Holding off the cost now likely increases the price you will eventually have to pay for a lease extension
Leasehold premises in Sedbergh with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Retaining 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Reuben, started to get close to the 80-year mark with the lease on his first floor flat in Sedbergh. Having purchased his property two decades ago, the lease term was of little importance. Luckily, he became aware that he would soon be paying an escalated premium for Extending the lease. Reuben arranged for a lease extension just in the nick of time last April. Reuben and the landlord ultimately agreed on sum of £5,500 . If the lease had fallen below eighty years, the amount would have increased by at least £1,150.
Dr Owen Turner purchased a first floor apartment in Sedbergh in March 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Sedbergh with an extended lease were worth £203,200. The average ground rent payable was £65 billed every twelve months. The lease came to a finish on 25 September 2086. Considering the 61 years remaining we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus expenses.
In 2012 we were called by Mr and Mrs. R Ali who, having moved into a first floor apartment in Sedbergh in October 2004. The question was if we could estimate the price could be for a 90 year extension to my lease. Similar residencies in Sedbergh with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed in 2096. Given that there were 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.