The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Sherwood can extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Sherwood lease extension. Shelving the costs now simply increases the amount you will eventually be required to pay for a lease extension.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same 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 many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Sherwood,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sherwood valuers.
Finn was the the leasehold proprietor of a conversion apartment in Sherwood on the market with a lease of just over fifty eight years outstanding. Finn informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
In 2013 we were approached by Dr W Morris who, having owned a purpose-built flat in Sherwood in November 2002. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparable properties in Sherwood with 100 year plus lease were worth £203,200. The average amount of ground rent was £65 invoiced monthly. The lease ended on 28 August 2086. Taking into account 61 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus professional charges.
In 2013 we were phoned by Mr and Mrs. A Ali who, having acquired a studio apartment in Sherwood in June 1995. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar homes in Sherwood with a long lease were worth £260,000. The average amount of ground rent was £50 billed annually. The lease ended on 17 March 2097. Having 72 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.