Saltash leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about 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 your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Saltash will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Saltash with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date 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. |
Retaining our service will provide you increased control over the value of your Saltash leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Gabriel, started to get close to the eighty-year threshold with the lease on his garden apartment in Saltash. Having purchased his property 19 years ago, the lease term was of minimal significance. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Gabriel was able to extend his lease just ahead of time in March. Gabriel and the freeholder subsequently settled on a premium of £5,500 . If the lease had slid below eighty years, the price would have become more costly by at least £1,025.
Last year we were called by Dr Y Morris , who took over the lease of a one bedroom flat in Saltash in February 2007. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Similar properties in Saltash with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £45 billed annually. The lease came to a finish on 8 October 2094. Taking into account 69 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Last July we were called by Mr and Mrs. M Rodríguez , who moved into a ground floor flat in Saltash in March 2000. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Saltash with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected per annum. The lease finished on 20 October 2083. Taking into account 58 years unexpired we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.