There is no doubt about it a leasehold property in Sandbach is a wasting asset as a result of the diminishing lease term. If the lease has, over 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Sandbach will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Sandbach with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 Sandbach,the lease extension lawyers 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 Sandbach valuers.
Alex owned a conversion apartment in Sandbach on the market with a lease of fraction over 61 years unexpired. Alex informally contacted his freeholder 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 £200 annually. No ground rent would be payable on a lease extension were Alex to invoke his statutory right. Alex procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr Mason King moved into a first floor apartment in Sandbach in February 2011. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical properties in Sandbach with 100 year plus lease were in the region of £232,800. The average ground rent payable was £45 billed every twelve months. The lease ended on 6 June 2089. Given that there were 65 years left we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Mr and Mrs. B Clarke completed a first floor flat in Sandbach in August 1997. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar flats in Sandbach with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected quarterly. The lease came to a finish on 13 August 2100. Having 76 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.