With a domestic leasehold property in Saltash, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Saltash with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has under 80 years remaining, under the current legislation the freeholder can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you better control over the value of your Saltash leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Aaron owned a 2 bedroom flat in Saltash being sold with a lease of fraction over fifty eight years left. Aaron on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2012 we were phoned by Dr C Gray who, having took over the lease of a first floor apartment in Saltash in June 1999. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical flats in Saltash with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 invoiced per annum. The lease ran out on 9 August 2097. Considering the 72 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
In 2014 we were phoned by Ms Holly Anderson who, having purchased a basement flat in Saltash in May 1999. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Comparable homes in Saltash with an extended lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease lapsed in 2086. Having 61 years remaining we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of expenses.