Sedbergh Lease Extension - Free Consultation

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Main reasons to start your Sedbergh lease extension


Why you should start your Sedbergh lease extension today:

Increase your lease and increase your Sedbergh property value

For those whose Sedbergh property is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.

Sedbergh property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to grant a mortgage on a short lease

Lenders are really restricting their approach as regards to properties in Sedbergh with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you needed to sell, your only options would be to find a cash buyer, or hope for the best at auction thus reducing your market.

Lender Requirement
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;
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Get in touch with one of our Sedbergh lease extension solicitors or enfranchisement solicitors

Retaining our service gives you enhanced 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Sedbergh Lease Extension Example Cases:

Jayden, Sedbergh, Cumbria

Half a year ago Jayden, started to get near to the 80-year mark with the lease on his leasehold apartment in Sedbergh. In buying his home twenty years ago, the unexpired term was of minimal concern. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. Jayden extended the lease at the eleventh hour last May. Jayden and the freeholder via the managing agents subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the premium would have increased by at least £1,000.

Sedbergh case:

In 2012 we were called by Dr Jacob David who, having bought a basement flat in Sedbergh in January 2001. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Sedbergh with an extended lease were in the region of £235,200. The mid-range ground rent payable was £45 billed monthly. The lease expired in 2090. Having 66 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.

Sedbergh case:

In 2014 we were phoned by Mr and Mrs. H Howard who, having moved into a recently refurbished apartment in Sedbergh in July 2001. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparable properties in Sedbergh with a long lease were valued about £275,000. The mid-range ground rent payable was £55 collected per annum. The lease concluded on 19 March 2101. Given that there were 77 years outstanding we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.