For anyone whose Sleaford property is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold properties in Sleaford with over 100 years outstanding on the lease are sometimes regarded as a ‘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 buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Skipton Building Society | |
| TSB |
Retaining our service gives you increased control over the value of your Sleaford leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold owner of a high value flat in Sleaford being marketed with a lease of a little over fifty eight years unexpired. Henry informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
In 2013 we were phoned by Mr and Mrs. K Walker who, having owned a basement apartment in Sleaford in September 1996. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical homes in Sleaford with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 billed yearly. The lease expired on 27 February 2102. Having 76 years unexpired we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2013 we were approached by Mr and Mrs. J Smith who, having completed a first floor apartment in Sleaford in October 2011. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical flats in Sleaford with a long lease were worth £257,800. The average ground rent payable was £65 collected per annum. The lease terminated in 2091. Having 65 years left we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.