With a long leasehold property in Saltney, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Leasehold owners in Saltney with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has less than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 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 property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a freeholder in Saltney,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Saltney valuers.
Jasper owned a high value flat in Saltney being sold with a lease of fraction over 61 years remaining. Jasper informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2010 we were phoned by Mr and Mrs. W Gómez who, having was assigned a lease of a one bedroom flat in Saltney in November 2012. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable residencies in Saltney with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expiry date was on 15 March 2080. Given that there were 54 years outstanding we calculated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 not including costs.
In 2014 we were e-mailed by Dr Connor Clarke who, having took over the lease of a studio apartment in Saltney in March 2001. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar homes in Saltney with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 billed monthly. The lease elapsed in 2100. Given that there were 74 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.