Saltash leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Saltash will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Saltash can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 procuring Saltash lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy negotiations with the landlord of her leasehold flat in Saltash, Kayleigh initiated the lease extension process as the 80 year threshold was rapidly coming. The lease extension was concluded in March 2010. The freeholder’s costs were kept to an absolute minimum.
Last year we were called by Mrs W Khan , who moved into a one bedroom apartment in Saltash in February 1995. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable premises in Saltash with 100 year plus lease were in the region of £260,200. The mid-range ground rent payable was £65 billed per annum. The lease termination date was on 23 May 2092. Considering the 66 years outstanding we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 not including legals.
Ms V Cooper acquired a first floor apartment in Saltash in July 2002. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar flats in Saltash with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 invoiced yearly. The lease ended in 2081. Taking into account 55 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of expenses.