When it comes to residential leasehold property in Saltash, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear 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 number of years is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years left. Anyone in Saltash with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has under eighty years outstanding, under the relevant Act the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Saltash with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Saltash,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Saltash valuers.
After lengthy correspondence with the freeholder of her basement apartment in Saltash, Charlotte commenced the lease extension process just as the lease was nearing the critical eighty-year deadline. The legal work completed in October 2010. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. O David acquired a basement flat in Saltash in July 1998. The question was if we could estimate the price could be to extend the lease by 90 years. Identical residencies in Saltash with an extended lease were valued about £198,800. The average amount of ground rent was £55 collected yearly. The lease expiry date was on 28 January 2081. Given that there were 55 years unexpired we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus professional charges.
In 2010 we were approached by Mr and Mrs. H García who, having owned a studio flat in Saltash in September 2010. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative residencies in Saltash with a long lease were in the region of £295,000. The average amount of ground rent was £50 collected annually. The lease came to a finish on 26 August 2101. Given that there were 75 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.