When it comes to long leasehold premises in Snaith, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years left. Anyone in Snaith with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has less than 80 years outstanding, under the current legislation the freeholder is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
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 ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Snaith,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Snaith valuers.
14 months ago Stanley, came critically close to the eighty-year threshold with the lease on his basement apartment in Snaith. Having purchased his flat two decades ago, the unexpired term was of no significance. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. Stanley arranged for a lease extension at the eleventh hour in August. Stanley and the freeholder eventually agreed on the final figure of £6,000 . If the lease had fallen to less than eighty years, the sum would have increased by a minimum £1,000.
In 2011 we were approached by Mr and Mrs. T Patel who, having took over the lease of a studio flat in Snaith in February 2008. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Snaith with a long lease were worth £255,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 28 May 2096. Given that there were 70 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last Winter we were e-mailed by Mr and Mrs. A Mason , who owned a purpose-built flat in Snaith in September 2004. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable residencies in Snaith with 100 year plus lease were valued about £246,800. The mid-range ground rent payable was £60 billed yearly. The lease concluded on 24 March 2076. Considering the 50 years remaining we estimated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of professional charges.