As the the remaining lease term of a Saundersfoot residential lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Saundersfoot will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Saundersfoot with in excess of 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Saundersfoot leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Jackson, started to get close to the 80-year threshold with the lease on his two bedroom flat in Saundersfoot. Having bought his property two decades ago, the length of the lease was of no bearing. As luck would have it, it dawned on him that he would imminently be paying way over the odds for a lease extension. Jackson was able to extend his lease just ahead of time last June. Jackson and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If the lease had gone lower than eighty years, the price would have increased by a minimum £950.
Dr F Wright was assigned a lease of a one bedroom flat in Saundersfoot in June 2001. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical residencies in Saundersfoot with an extended lease were in the region of £220,400. The mid-range ground rent payable was £45 billed monthly. The lease finished in 2089. Given that there were 64 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus fees.
In 2009 we were phoned by Mr B François who, having completed a one bedroom flat in Saundersfoot in September 1999. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Saundersfoot with a long lease were worth £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended on 24 October 2100. Given that there were 75 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.