On the balance of probabilities if you own a flat in Sandy you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you increased control over the value of your Sandy leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Adam was the the leasehold owner of a studio flat in Sandy being sold with a lease of a little over 61 years remaining. Adam on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Adam to invoke his statutory right. Adam procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
In 2010 we were e-mailed by Mr and Mrs. M Martin who, having completed a ground floor apartment in Sandy in June 2006. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Sandy with a long lease were valued about £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish on 26 April 2104. Taking into account 79 years outstanding we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.
Last Spring we were phoned by Mr and Mrs. A Campbell , who took over the lease of a garden flat in Sandy in March 2008. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparable properties in Sandy with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced annually. The lease end date was on 1 October 2084. Given that there were 59 years left we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of costs.