The nearer a residential lease in Saltash nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 100 years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Saltash will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Saltash can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 in-depth market knowledge 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.
Half a year ago Milo, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Saltash. Having purchased his flat two decades ago, the length of the lease was of minimal interest. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Milo arranged for a lease extension at the eleventh hour in September. Milo and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If he had missed the deadline, the amount would have gone up by at least £850.
Last Autumn we were contacted by Dr W Flores , who acquired a purpose-built flat in Saltash in July 2010. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Saltash with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 collected per annum. The lease finished on 2 May 2086. Having 61 years remaining we calculated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of fees.
Dr Leah Gómez purchased a ground floor apartment in Saltash in October 2008. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Similar properties in Saltash with an extended lease were worth £166,800. The mid-range ground rent payable was £50 invoiced yearly. The lease elapsed on 26 March 2075. Considering the 50 years outstanding we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.