It’s a harsh certainty that a Saltash residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted 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 need to 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 slips lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Saltash will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Saltash can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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.
Felix owned a high value flat in Saltash on the market with a lease of a little over sixty years unexpired. Felix on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Felix to exercise his statutory right. Felix obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Mr Hugo Baker took over the lease of a studio flat in Saltash in July 2007. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable properties in Saltash with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 billed every twelve months. The lease finished on 25 August 2082. Considering the 57 years remaining we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of fees.
Last Summer we were approach by Mr and Mrs. Y Morgan , who bought a one bedroom apartment in Saltash in May 2002. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical properties in Saltash with an extended lease were worth £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease terminated on 2 October 2102. Given that there were 77 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.