With a long leasehold premises in Sale, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years remaining. Leasehold owners in Sale with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once a lease has below 80 years left, under the relevant statute the freeholder can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Sale lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After lengthy correspondence with the landlord of her two bedroom flat in Sale, Rachael commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was finalised in June 2011. The freeholder’s costs were kept to an absolute minimum.
Mr Dylan François took over the lease of a garden apartment in Sale in February 2007. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Identical properties in Sale with a long lease were valued around £166,400. The average amount of ground rent was £60 collected per annum. The lease expired in 2079. Considering the 54 years remaining we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of costs.
Last Spring we were approach by Mr and Mrs. M Wood , who bought a recently refurbished flat in Sale in March 1999. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparative flats in Sale with a long lease were worth £227,800. The average amount of ground rent was £45 invoiced every twelve months. The lease finished on 12 June 2090. Considering the 65 years remaining we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.