Saltdean leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard 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 Saltdean will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Saltdean with in excess of one hundred years remaining on the lease are often referred to as ‘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 freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Saltdean can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 a wealth of experience dealing with Saltdean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the landlord of her purpose-built flat in Saltdean, Danielle started the lease extension process as the 80 year threshold was fast approaching. The lease extension was finalised in September 2009. The freeholder’s fees were kept to an absolute minimum.
Last month we were approach by Mr and Mrs. V Leroy , who acquired a first floor flat in Saltdean in July 2007. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparable flats in Saltdean with an extended lease were worth £300,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out in 2101. Taking into account 75 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2009 we were called by Mr and Mrs. K Sánchez who, having owned a one bedroom apartment in Saltdean in June 2006. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Saltdean with 100 year plus lease were valued around £250,400. The average amount of ground rent was £65 invoiced per annum. The lease finished on 1 February 2090. Having 64 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of professional charges.