Snaresbrook leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Snaresbrook will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Lease extensions in Snaresbrook can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
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 dealing with Snaresbrook lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the freeholder of her leasehold apartment in Snaresbrook, Jessica initiated the lease extension process as the 80 year deadline was swiftly advancing. The legal work was finalised in May 2014. The landlord’s costs were restricted to under four hundred pounds.
Last Autumn we were e-mailed by Mr and Mrs. E Scott , who was assigned a lease of a garden apartment in Snaresbrook in June 2005. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable properties in Snaresbrook with a long lease were valued around £285,000. The average amount of ground rent was £45 collected yearly. The lease expired in 2097. Taking into account 71 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.
An example of a Freehold Enfranchisement decision for a Snaresbrook flat is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case related to 2 flats. The unexpired lease term was 73.92 years.