It’s a harsh certainty that a Snaith residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Snaith property market.Once your lease nears 85ish years, you should start considering 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 falls lower than 80 years - otherwise a higher premium will be due. Most flat owners in Snaith will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Snaith with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Snaith can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Snaith lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Aiden, came dangerously close to the eighty-year threshold with the lease on his studio apartment in Snaith. In buying his flat two decades ago, the length of the lease was of little importance. Thankfully, he realised he needed to take steps soon on Extending the lease. Aiden arranged for a lease extension at the eleventh hour in April. Aiden and the landlord subsequently settled on an amount of £6,000 . If he had missed the deadline, the sum would have increased by a minimum £1,150.
Last Autumn we were phoned by Mr Aaron García , who purchased a ground floor flat in Snaith in November 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Snaith with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease concluded on 18 April 2104. Having 79 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
Last October we were e-mailed by Dr F Roberts , who was assigned a lease of a one bedroom flat in Snaith in September 2004. The question was if we could approximate the price would likely be to extend the lease by 90 years. Identical homes in Snaith with a long lease were valued about £198,400. The average amount of ground rent was £65 invoiced per annum. The lease lapsed in 2084. Given that there were 59 years remaining we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of legals.