Sedgefield leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Sedgefield will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service will provide you enhanced control over the value of your Sedgefield leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Aarav, came precariously near to the eighty-year threshold with the lease on his first floor flat in Sedgefield. Having bought his home two decades ago, the lease term was of minimal significance. Thankfully, he noticed he needed to take action soon on Extending the lease. Aarav was able to extend his lease just ahead of time in August. Aarav and the freeholder ultimately settled on sum of £5,000 . If the lease had descended below 80 years, the sum would have become more costly by at least £1,000.
In 2013 we were approached by Mrs B Bell who, having completed a first floor flat in Sedgefield in November 2002. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical homes in Sedgefield with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease ran out in 2104. Given that there were 79 years outstanding we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.
Dr Zachary Richardson was assigned a lease of a garden flat in Sedgefield in January 2008. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Sedgefield with a long lease were worth £193,400. The mid-range ground rent payable was £65 billed per annum. The lease ran out on 3 March 2084. Given that there were 59 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of expenses.