With a domestic leasehold premises in Sedbergh, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years remaining. Anyone in Sedbergh with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. When the lease term has less than eighty years remaining, under the current legislation the freeholder can calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Sedbergh can be a difficult process. We recommend you secure professional help from a lawyer 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 dealing with Sedbergh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Michael was the the leasehold owner of a studio flat in Sedbergh being marketed with a lease of a few days over sixty years unexpired. Michael informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Michael to exercise his statutory right. Michael obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Ms Y Mitchell moved into a garden flat in Sedbergh in January 2011. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Sedbergh with an extended lease were in the region of £285,000. The average ground rent payable was £55 invoiced annually. The lease ran out on 3 January 2104. Having 79 years left we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.
Last Winter we were phoned by Mr V Leroy , who completed a basement flat in Sedbergh in February 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Sedbergh with an extended lease were valued around £193,400. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed in 2084. Given that there were 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.