Sleaford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Sleaford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Sleaford you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Sleaford with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Sleaford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sleaford valuers.
Isaac was the the leasehold owner of a high value flat in Sleaford on the market with a lease of fraction over sixty years left. Isaac on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.
Dr Amber Williams completed a basement flat in Sleaford in March 2005. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar properties in Sleaford with an extended lease were in the region of £240,600. The average amount of ground rent was £60 invoiced per annum. The lease finished in 2087. Given that there were 62 years unexpired we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including professional charges.
Mr and Mrs. A Bonnet was assigned a lease of a recently refurbished flat in Sleaford in March 2000. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable properties in Sleaford with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 billed yearly. The lease expired on 13 August 2076. Given that there were 51 years outstanding we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.