It’s a harsh certainty that a Sedgefield residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Sedgefield property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Most flat owners in Sedgefield will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Sedgefield with in excess of one hundred years outstanding 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Skipton Building Society |
The lawyers that we work with handle Sedgefield 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 conveyancer we work with provide it.
In 2014 Daniel, started to get close to the eighty-year mark with the lease on his leasehold apartment in Sedgefield. Having bought his property two decades ago, the lease term was of no interest. As luck would have it, he recognised he needed to take action soon on Extending the lease. Daniel extended the lease just under the wire last April. Daniel and the landlord eventually settled on an amount of £5,000 . If the lease had slipped below 80 years, the figure would have escalated by a minimum £1,125.
In 2011 we were approached by Mr and Mrs. N Walker who, having took over the lease of a basement apartment in Sedgefield in April 2011. The question was if we could estimate the price would be to extend the lease by ninety years. Similar properties in Sedgefield with an extended lease were worth £183,600. The average ground rent payable was £65 billed every twelve months. The lease ended on 28 September 2083. Considering the 57 years left we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of costs.
Last Christmas we were called by Dr Mason Phillips , who purchased a recently refurbished apartment in Sedgefield in November 2005. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Sedgefield with an extended lease were worth £245,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ended on 16 September 2094. Given that there were 68 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.