Saltburn By The Sea leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Saltburn By The Sea will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Saltburn By The Sea leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a high value apartment in Saltburn By The Sea on the market with a lease of a few days over 59 years remaining. Jackson on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jackson to invoke his statutory right. Jackson procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Autumn we were called by Mr and Mrs. H Walker , who bought a garden flat in Saltburn By The Sea in May 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Saltburn By The Sea with a long lease were valued around £280,000. The mid-range ground rent payable was £55 collected annually. The lease ended on 28 May 2103. Considering the 78 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
Mr and Mrs. M Reed bought a first floor flat in Saltburn By The Sea in June 2008. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical premises in Saltburn By The Sea with 100 year plus lease were valued around £191,000. The average ground rent payable was £65 invoiced annually. The lease terminated in 2083. Given that there were 58 years unexpired we estimated the premium to the landlord to extend the lease to be within £23,800 and £27,400 plus legals.