Sanderstead leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease falls under eighty years - otherwise a higher amount will be payable. Leasehold owners in Sanderstead will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Sanderstead with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Sanderstead can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Sanderstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Thomas owned a studio flat in Sanderstead on the market with a lease of fraction over sixty years left. Thomas on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Thomas to invoke his statutory right. Thomas procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Dr G Torres completed a one bedroom flat in Sanderstead in October 2007. The question was if we could estimate the price could be for a ninety year lease extension. Comparable flats in Sanderstead with an extended lease were worth £191,400. The average ground rent payable was £55 billed yearly. The lease finished in 2079. Given that there were 54 years left we calculated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Sanderstead flat is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case was in relation to 6 flats. The unexpired term as at the valuation date was 78.32 years.