There is no doubt about it a leasehold flat or house in Saltash is a wasting asset as a result of the shortening lease. If the residual term has, beyond one hundred years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Saltash will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Saltash with more than 100 years remaining 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Saltash lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to protracted discussions with the landlord of her ground floor apartment in Saltash, Niamh started the lease extension process as the 80 year deadline was swiftly approaching. The transaction completed in August 2013. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were phoned by Dr Rosie Adams who, having moved into a first floor flat in Saltash in March 2007. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Saltash with 100 year plus lease were valued around £174,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease expiry date was on 11 May 2077. Considering the 51 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.
Last September we were approach by Mr and Mrs. R Torres , who took over the lease of a one bedroom apartment in Saltash in June 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative residencies in Saltash with a long lease were worth £285,000. The average amount of ground rent was £45 invoiced monthly. The lease ended on 5 April 2097. Considering the 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.