It’s a harsh certainty that a Saltney residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Saltney property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Saltney will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Saltney can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
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 Saltney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hugo was the the leasehold proprietor of a conversion apartment in Saltney on the market with a lease of just over fifty eight years left. Hugo on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last Autumn we were phoned by Mrs Anna Rodríguez , who was assigned a lease of a recently refurbished flat in Saltney in June 2011. The question was if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Saltney with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed annually. The lease end date was in 2091. Given that there were 67 years remaining we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including legals.
Last month we were e-mailed by Dr E Rogers , who acquired a ground floor apartment in Saltney in September 2006. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable flats in Saltney with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £60 collected quarterly. The lease came to a finish in 2080. Given that there were 56 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.