The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Saltburn By The Sea can extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Saltburn By The Sea lease extension. Putting off that expense today simply escalates the price you will ultimately have to pay for a lease extension.
Leasehold premises in Saltburn By The Sea with in excess of 100 years outstanding 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
Using our service will provide you increased control over the value of your Saltburn By The Sea leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Omar owned a high value apartment in Saltburn By The Sea being marketed with a lease of just over fifty eight years remaining. Omar informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Omar to invoke his statutory right. Omar obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Dr N Garcia owned a purpose-built apartment in Saltburn By The Sea in June 2004. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Saltburn By The Sea with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 collected every twelve months. The lease terminated on 24 January 2091. Having 66 years remaining we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Dr M Khan purchased a studio flat in Saltburn By The Sea in August 2010. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar properties in Saltburn By The Sea with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed quarterly. The lease ended in 2102. Considering the 77 years remaining we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.