Snaresbrook leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Flat owners in Snaresbrook will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Snaresbrook with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Seth was the the leasehold proprietor of a studio flat in Snaresbrook on the market with a lease of fraction over fifty eight years left. Seth on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Dr A Green was assigned a lease of a one bedroom apartment in Snaresbrook in January 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar flats in Snaresbrook with an extended lease were valued about £240,600. The mid-range amount of ground rent was £60 collected annually. The lease lapsed in 2088. Having 62 years remaining we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Snaresbrook premises 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 term as at the valuation date was 73.92 years.