The only way is down when it comes to Saltash lease terms. Saltash leaseholds that have a residual term shorter than 80 years will drop in value even faster, and the cost of extending your lease will go up.
Leasehold properties in Saltash with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Saltash,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Saltash valuers.
Matthew was the the leasehold owner of a 2 bedroom flat in Saltash on the market with a lease of just over fifty eight years remaining. Matthew informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2009 we were approached by Mr and Mrs. B Moore who, having acquired a basement apartment in Saltash in May 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Saltash with a long lease were valued around £210,000. The mid-range ground rent payable was £50 invoiced monthly. The lease came to a finish in 2105. Given that there were 80 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Dr O Hill was assigned a lease of a basement flat in Saltash in March 2010. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparable flats in Saltash with a long lease were in the region of £275,000. The mid-range amount of ground rent was £45 collected per annum. The lease ran out on 13 August 2094. Taking into account 69 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.