Unfortunately that a Saltash residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Saltash property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Saltash will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Saltash can be a difficult process. We recommend you get guidance 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 in-depth market knowledge procuring Saltash lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin owned a high value flat in Saltash being marketed with a lease of fraction over fifty eight years left. Benjamin on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Summer we were approach by Dr Kate Sharif , who took over the lease of a studio flat in Saltash in October 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Saltash with a long lease were valued about £267,600. The mid-range ground rent payable was £65 collected monthly. The lease end date was on 7 November 2091. Considering the 67 years outstanding we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including professional charges.
Mr and Mrs. U Gunderson took over the lease of a garden apartment in Saltash in January 2009. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative residencies in Saltash with 100 year plus lease were in the region of £206,200. The average amount of ground rent was £60 invoiced yearly. The lease finished on 19 July 2080. Considering the 56 years remaining we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.