It’s a harsh certainty that a Sacriston residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Sacriston property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be due. The majority of flat owners in Sacriston will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Sacriston with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Sacriston leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Blake owned a conversion apartment in Sacriston being marketed with a lease of fraction over fifty eight years left. Blake on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
In 2011 we were phoned by Dr Sophia Díaz who, having acquired a ground floor apartment in Sacriston in January 2007. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical properties in Sacriston with 100 year plus lease were worth £248,000. The average amount of ground rent was £65 invoiced yearly. The lease finished on 22 July 2088. Having 63 years remaining we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus fees.
Mr and Mrs. W Clarke took over the lease of a purpose-built apartment in Sacriston in May 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative properties in Sacriston with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 billed quarterly. The lease expired on 1 January 2077. Having 52 years remaining we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.