When it comes to residential leasehold premises in Saltney, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Residents in Saltney with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under eighty years remaining, under the current legislation the freeholder is entitled to calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with procure Saltney lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of 9 months of protracted discussions with the landlord of her garden apartment in Saltney, Jodie commenced the lease extension process just as the lease was nearing the all-important eighty-year deadline. The lease extension was finalised in May 2013. The freeholder’s fees were negotiated to slightly above 450 pounds.
Dr P Campbell purchased a first floor apartment in Saltney in February 2009. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable homes in Saltney with a long lease were valued around £260,200. The average ground rent payable was £65 collected per annum. The lease came to a finish in 2092. Taking into account 66 years left we calculated the premium to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of fees.
Last Spring we were called by Ms Natasha Bernard , who completed a garden flat in Saltney in October 1999. We are asked if we could approximate the premium would be to extend the lease by ninety years. Similar premises in Saltney with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ran out in 2081. Given that there were 55 years remaining we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus costs.