When it comes to domestic leasehold premises in Salisbury, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years remaining. Anyone in Salisbury with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has below eighty years outstanding, under the relevant legislation the landlord can calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Yorkshire 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. |
Lease extensions in Salisbury can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 Salisbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Noah, came perilously near to the eighty-year mark with the lease on his two bedroom apartment in Salisbury. In buying his home twenty years previously, the lease term was of minimal interest. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Noah arranged for a lease extension at the eleventh hour last January. Noah and the landlord ultimately agreed on a premium of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £1,050.
In 2012 we were contacted by Ms W Nelson who, having owned a garden flat in Salisbury in April 1998. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Salisbury with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 invoiced yearly. The lease finished on 10 May 2092. Taking into account 66 years remaining we estimated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus costs.
Mrs Rachael David completed a one bedroom apartment in Salisbury in July 2009. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Salisbury with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 billed monthly. The lease expiry date was on 5 February 2081. Having 55 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of fees.