When it comes to domestic leasehold property in Sleaford, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in Sleaford with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has below eighty years left, under the relevant Act the freeholder is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Sleaford with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Sleaford can be a difficult process. We recommend you obtain 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 procuring Sleaford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo owned a conversion apartment in Sleaford being marketed with a lease of a few days over fifty eight years remaining. Milo on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Mr and Mrs. F Bernard acquired a first floor flat in Sleaford in October 2008. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Comparable residencies in Sleaford with a long lease were worth £205,000. The average ground rent payable was £50 invoiced yearly. The lease ran out in 2104. Given that there were 78 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
Last year we were phoned by Mr Hugo Cooper , who completed a one bedroom apartment in Sleaford in August 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Sleaford with a long lease were valued about £267,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed on 4 June 2093. Considering the 67 years left we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of costs.