Snaresbrook leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Snaresbrook will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society |
The conveyancers that we work with handle Snaresbrook 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.
Two years ago Eliot, came seriously near to the 80-year threshold with the lease on his first floor flat in Snaresbrook. Having bought his flat twenty years ago, the length of the lease was of no relevance. Fortunately, it dawned on him that he would soon be paying way over the odds for a lease extension. Eliot was able to extend his lease just in the nick of time in August. Eliot and the freeholder subsequently settled on sum of £6,000 . If the lease had slipped to less than 80 years, the premium would have become more exhorbitant by a minimum £875.
In 2011 we were called by Dr B Michel who, having acquired a first floor apartment in Snaresbrook in April 2005. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Snaresbrook with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 collected annually. The lease termination date was in 2081. Having 55 years left we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus expenses.
An example of a Freehold Enfranchisement decision for a Snaresbrook residence is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case was in relation to 2 flats. The unexpired residue of the current lease was 73.92 years.