The nearer a residential lease in Saltburn By The Sea nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Saltburn By The Sea will qualify for this right; that being said a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Saltburn By The Sea with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancers that we work with procure Saltburn By The Sea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Nathan owned a 2 bedroom apartment in Saltburn By The Sea being marketed with a lease of a little over 72 years unexpired. Nathan informally spoke with his landlord being a well known Manchester-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 on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Nathan to exercise his statutory right. Nathan procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Autumn we were e-mailed by Mr and Mrs. P Reed , who purchased a studio flat in Saltburn By The Sea in May 2007. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative properties in Saltburn By The Sea with a long lease were valued around £265,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed in 2099. Taking into account 73 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2010 we were e-mailed by Mr C Michel who, having bought a first floor apartment in Saltburn By The Sea in April 1996. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar properties in Saltburn By The Sea with an extended lease were worth £264,000. The mid-range ground rent payable was £60 invoiced monthly. The lease expiry date was on 7 February 2079. Given that there were 53 years remaining we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 not including professional charges.