The market value of a leasehold property in Saltash depends on how many years the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that formalities can be concluded ahead of the 80 year cut off point. Leasehold Reform legislation enables Saltash qualifying lessees to an additional term of ninety years over and above the unexpired term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Saltash leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Harry, came perilously close to the eighty-year mark with the lease on his leasehold apartment in Saltash. Having purchased his home 18 years previously, the lease term was of minimal importance. by good luck, he recognised he needed to take steps soon on Extending the lease. Harry was able to extend his lease at the eleventh hour in August. Harry and the landlord ultimately settled on an amount of £5,000 . If he failed to meet the deadline, the premium would have become more costly by a minimum £1,050.
In 2012 we were called by Ms Chloe Peterson who, having purchased a one bedroom flat in Saltash in October 2004. We are asked if we could estimate the price would be for a 90 year lease extension. Similar premises in Saltash with an extended lease were valued about £295,000. The average ground rent payable was £45 invoiced per annum. The lease terminated in 2100. Considering the 74 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Last July we were e-mailed by Mr and Mrs. Y Díaz , who moved into a first floor flat in Saltash in August 2012. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparable residencies in Saltash with a long lease were valued around £243,000. The average ground rent payable was £65 billed yearly. The lease came to a finish in 2089. Given that there were 63 years unexpired we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus expenses.