Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Saundersfoot. Inevitably, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Saundersfoot have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. You should give due attention before delaying your Saundersfoot lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold residencies in Saundersfoot with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Saundersfoot,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Saundersfoot valuers.
Following lengthy discussions with the freeholder of her leasehold flat in Saundersfoot, Georgina commenced the lease extension process just as her lease was nearing the crucial eighty-year mark. The legal work completed in April 2011. The landlord’s fees were kept to an absolute minimum.
In 2012 we were e-mailed by Mr C Carter who, having acquired a recently refurbished apartment in Saundersfoot in June 2002. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparable properties in Saundersfoot with a long lease were worth £193,400. The average ground rent payable was £65 invoiced every twelve months. The lease elapsed in 2085. Taking into account 59 years as a residual term we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.
Last year we were approach by Mr and Mrs. M André , who moved into a one bedroom apartment in Saundersfoot in July 2005. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative properties in Saundersfoot with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected per annum. The lease elapsed on 26 July 2096. Given that there were 70 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.