Saltburn By The Sea leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher premium will be due. Leasehold owners in Saltburn By The Sea will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Saltburn By The Sea with more than 100 years unexpired 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Saltburn By The Sea leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold owner of a 2 bedroom flat in Saltburn By The Sea being marketed with a lease of fraction over 61 years unexpired. Ollie on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2012 we were approached by Dr A Green who, having was assigned a lease of a one bedroom apartment in Saltburn By The Sea in May 1995. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Saltburn By The Sea with 100 year plus lease were valued about £193,400. The average amount of ground rent was £65 invoiced per annum. The lease concluded on 27 February 2084. Considering the 59 years unexpired we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of costs.
In 2010 we were phoned by Mrs I Cooper who, having took over the lease of a basement apartment in Saltburn By The Sea in May 2006. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable flats in Saltburn By The Sea with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease ran out on 3 July 2095. Given that there were 70 years left we calculated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 exclusive of costs.