The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Sanderstead may extend the lease for an additional 90 years under Leasehold Reform legislation. Please give careful consideration before delaying your Sanderstead lease extension. Postponing that expense now simply increases the price you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Sanderstead can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
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 a wealth of experience procuring Sanderstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Jayden, started to get near to the 80-year mark with the lease on his first floor flat in Sanderstead. Having purchased his home twenty years previously, the unexpired term was of little importance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Jayden was able to extend his lease at the eleventh hour last August. Jayden and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the price would have escalated by at least £950.
Mr and Mrs. H Brown bought a one bedroom apartment in Sanderstead in July 2010. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar homes in Sanderstead with 100 year plus lease were in the region of £216,000. The average amount of ground rent was £60 invoiced per annum. The lease ran out in 2083. Given that there were 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Sanderstead residence is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case affected 6 flats. The number of years remaining on the existing lease(s) was 78.32 years.