It’s an underpublicised truth that a Saltash residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Saltash property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. Most leasehold owners in Saltash will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
|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.|
|Lloyds TSB Scotland|| Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|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.
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
|Virgin|| 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Saltash can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Saltash lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October John, started to get close to the 80-year threshold with the lease on his studio apartment in Saltash. Having bought his flat two decades ago, the unexpired term was of minimal concern. Luckily, he became aware that he needed to take action soon on a lease extension. John was able to extend his lease just ahead of time last May. John and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If he not met the deadline, the figure would have become more costly by a minimum £1,000.
In 2013 we were approached by Dr O King who, having was assigned a lease of a basement apartment in Saltash in August 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable flats in Saltash with an extended lease were worth £250,400. The mid-range ground rent payable was £65 billed per annum. The lease expired on 24 March 2084. Given that there were 64 years left we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.
In 2014 we were e-mailed by Mrs Emma Ward who, having acquired a basement flat in Saltash in November 2002. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparable residencies in Saltash with 100 year plus lease were worth £189,000. The mid-range ground rent payable was £55 billed quarterly. The lease ended on 17 April 2073. Having 53 years remaining we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.