It’s a harsh certainty that a Saxilby residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Saxilby property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Saxilby will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Retaining our service gives you enhanced control over the value of your Saxilby leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her ground floor flat in Saxilby, Robyn commenced the lease extension process as the eighty year threshold was fast coming. The legal work was finalised in October 2007. The freeholder’s charges were kept to an absolute minimum.
Dr C Wood owned a one bedroom apartment in Saxilby in April 2001. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable homes in Saxilby with a long lease were valued around £176,200. The average ground rent payable was £65 collected yearly. The lease came to a finish in 2082. Taking into account 56 years remaining we approximated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of expenses.
Mr and Mrs. T Patel acquired a purpose-built apartment in Saxilby in June 2007. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical flats in Saxilby with an extended lease were valued around £237,600. The average ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 27 October 2093. Taking into account 67 years unexpired we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including professional charges.