Sedgefield leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease drops under 80 years - otherwise a higher amount will be due. Leasehold owners in Sedgefield will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Sedgefield with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Engaging our service will provide you better control over the value of your Sedgefield leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aarav was the the leasehold proprietor of a high value apartment in Sedgefield being marketed with a lease of a little over 61 years left. Aarav on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Aarav to invoke his statutory right. Aarav procured expert advice and secured satisfactory deal informally and readily saleable.
Last Spring we were contacted by Mrs N Thomas , who bought a basement apartment in Sedgefield in September 2001. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable premises in Sedgefield with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 billed per annum. The lease came to a finish on 28 June 2095. Given that there were 69 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Last month we were called by Mr and Mrs. J Michel , who completed a purpose-built apartment in Sedgefield in August 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Identical homes in Sedgefield with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 billed annually. The lease ended in 2106. Given that there were 80 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.