On the balance of probabilities if you own a flat in Snaith you actually own a long leasehold interest over your property
Leasehold properties in Snaith with more than one hundred years outstanding on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancing solicitors that we work with undertake Snaith 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 2014 Owen, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Snaith. In buying his flat two decades ago, the lease term was of little relevance. As luck would have it, he noticed he needed to take action soon on a lease extension. Owen was able to extend his lease at the eleventh hour last June. Owen and the freeholder via the management company subsequently settled on sum of £6,000 . If the lease had slipped below eighty years, the premium would have increased by at least £1,075.
Last Christmas we were phoned by Mr M Hill , who purchased a one bedroom apartment in Snaith in October 1999. We are asked if we could approximate the price could be for a 90 year lease extension. Similar residencies in Snaith with a long lease were worth £200,800. The average amount of ground rent was £65 billed monthly. The lease lapsed on 15 June 2086. Taking into account 60 years remaining we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus fees.
In 2009 we were phoned by Mr W Hill who, having was assigned a lease of a one bedroom apartment in Snaith in April 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Similar properties in Snaith with a long lease were valued around £260,000. The average ground rent payable was £50 billed monthly. The lease lapsed in 2097. Taking into account 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.