The closer a residential lease in Snaith nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Snaith will meet the qualifying criteria; nevertheless a conveyancer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Snaith,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Snaith valuers.
Hugo owned a 2 bedroom flat in Snaith on the market with a lease of just over sixty years left. Hugo informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2009 we were phoned by Dr Y Martínez who, having took over the lease of a one bedroom apartment in Snaith in October 2005. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical homes in Snaith with a long lease were worth £242,600. The mid-range amount of ground rent was £45 collected per annum. The lease lapsed in 2092. Having 67 years left we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including expenses.
In 2013 we were approached by Mr G Green who, having was assigned a lease of a first floor flat in Snaith in February 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative properties in Snaith with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease lapsed on 5 August 2103. Having 78 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.