The nearer a residential lease in Sherborne nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Sherborne will qualify for this right; that being said a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property 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. |
| Chelsea 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. |
| 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Sherborne can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Sherborne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the freeholder of her studio apartment in Sherborne, Danielle initiated the lease extension process just as her lease was nearing the crucial eighty-year deadline. The legal work completed in April 2005. The landlord’s costs were negotiated to approximately 700 pounds.
In 2011 we were e-mailed by Ms Alicia Bernard who, having was assigned a lease of a basement flat in Sherborne in January 2002. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparative premises in Sherborne with a long lease were worth £300,000. The mid-range ground rent payable was £50 billed yearly. The lease lapsed on 5 November 2101. Having 76 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
In 2009 we were called by Mr and Mrs. I Taylor who, having was assigned a lease of a ground floor apartment in Sherborne in July 2005. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Sherborne with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease ended in 2090. Considering the 65 years left we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of expenses.