Saltney leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Saltney enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Saltney you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a Saltney leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold premises in Saltney with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
Lease extensions in Saltney can be a difficult process. We recommend you secure 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 in-depth market knowledge dealing with Saltney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Jasper, came seriously close to the 80-year mark with the lease on his one bedroom apartment in Saltney. Having purchased his flat 18 years ago, the unexpired term was of no bearing. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Jasper arranged for a lease extension just under the wire in March. Jasper and the freeholder via the management company in the end settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £850.
Last September we were approach by Mr M Davies , who acquired a basement apartment in Saltney in November 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative flats in Saltney with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 collected yearly. The lease ran out on 25 November 2086. Having 61 years left we approximated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.
Mrs W Adams was assigned a lease of a one bedroom flat in Saltney in February 2005. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical properties in Saltney with 100 year plus lease were worth £166,800. The average amount of ground rent was £50 billed yearly. The lease expired in 2075. Having 50 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.