Saltash leases on domestic deteriorating in value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Saltash will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Saltash with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Saltash leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jacob, came very close to the 80-year threshold with the lease on his basement flat in Saltash. In buying his property two decades ago, the lease term was of no interest. As luck would have it, he realised he would soon be paying way over the odds for Extending the lease. Jacob arranged for a lease extension just in the nick of time in May. Jacob and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If the lease had dipped below 80 years, the sum would have increased by at least £1,075.
Mr and Mrs. T Rivera owned a garden apartment in Saltash in November 2001. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Saltash with a long lease were worth £235,600. The average ground rent payable was £60 collected monthly. The lease came to a finish in 2088. Taking into account 62 years remaining we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of expenses.
Mr J Martinez acquired a recently refurbished apartment in Saltash in January 1996. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative residencies in Saltash with an extended lease were valued around £174,200. The average ground rent payable was £55 invoiced monthly. The lease terminated in 2077. Having 51 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.