With a residential leasehold premises in Sherwood, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years left. Leasehold owners in Sherwood with a lease nearing 81 years left should seriously think of extending it as soon as possible. When the lease term has less than 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Sherwood with more than one hundred years unexpired 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 buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Sherwood can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 Sherwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Oscar, came dangerously close to the eighty-year mark with the lease on his purpose- built flat in Sherwood. In buying his home two decades ago, the lease term was of minimal relevance. As luck would have it, he realised he would soon be paying an inflated amount for Extending the lease. Oscar arranged for a lease extension just under the wire last March. Oscar and the landlord subsequently agreed on an amount of £5,500 . If the lease had slipped lower than eighty years, the amount would have increased by at least £900.
In 2010 we were e-mailed by Dr Samuel Robinson who, having owned a garden flat in Sherwood in June 2002. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative homes in Sherwood with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 billed annually. The lease terminated in 2106. Considering the 80 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.
In 2012 we were contacted by Mr and Mrs. T Campbell who, having bought a one bedroom apartment in Sherwood in November 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Sherwood with an extended lease were worth £200,800. The average ground rent payable was £65 collected every twelve months. The lease finished in 2086. Taking into account 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus professional charges.