Sandbach leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Leasehold owners in Sandbach will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Sandbach lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jasper owned a 2 bedroom flat in Sandbach being sold with a lease of fraction over fifty eight years remaining. Jasper on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr N Sánchez was assigned a lease of a one bedroom flat in Sandbach in October 1998. The question was if we could estimate the price could be to extend the lease by a further 90 years. Comparative residencies in Sandbach with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed in 2082. Given that there were 57 years as a residual term we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.
Last October we were called by Dr U Carter , who moved into a basement apartment in Sandbach in May 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Sandbach with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out on 24 February 2093. Having 68 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.