There is no doubt about it a leasehold property in Sherborne is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Sherborne will meet the qualifying criteria; however a lawyer will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Sherborne with over 100 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 upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander |
Using our service gives you better control over the value of your Sherborne leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
John was the the leasehold owner of a conversion flat in Sherborne being marketed with a lease of fraction over fifty eight years unexpired. John informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were John to invoke his statutory right. John procured expert advice and secured an acceptable deal informally and sell the flat.
Last month we were approach by Dr Nathaniel Rodríguez , who was assigned a lease of a one bedroom flat in Sherborne in January 2008. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Sherborne with a long lease were valued about £295,000. The mid-range amount of ground rent was £45 billed per annum. The lease finished on 12 February 2100. Taking into account 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
In 2014 we were contacted by Dr Blake López who, having was assigned a lease of a basement apartment in Sherborne in March 1995. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Sherborne with a long lease were in the region of £243,000. The average amount of ground rent was £65 invoiced quarterly. The lease lapsed on 15 August 2089. Given that there were 63 years unexpired we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus costs.