As the the remaining lease term of a Sandy domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 125 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Sandy will qualify for this right; however a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Sandy with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Sandy can be a difficult process. We recommend you procure guidance from a conveyancer 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 procuring Sandy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the landlord of her first floor apartment in Sandy, Molly initiated the lease extension process as the 80 year mark was swiftly advancing. The lease extension was concluded in July 2006. The landlord’s charges were kept to an absolute minimum.
Dr F Williams completed a recently refurbished flat in Sandy in April 2003. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable premises in Sandy with a long lease were valued around £242,600. The average amount of ground rent was £45 invoiced annually. The lease concluded on 21 July 2092. Given that there were 67 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus expenses.
Last year we were phoned by Mr and Mrs. F Bennett , who took over the lease of a one bedroom flat in Sandy in October 2010. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Comparative homes in Sandy with 100 year plus lease were worth £280,000. The average ground rent payable was £55 collected per annum. The lease lapsed on 14 April 2103. Taking into account 78 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.