It’s an underpublicised certainty that a Snaresbrook residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Snaresbrook property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term falls below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Snaresbrook will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Snaresbrook leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her one bedroom flat in Snaresbrook, Lauren initiated the lease extension process just as the lease was approaching the crucial eighty-year mark. The lease extension was finalised in May 2006. The landlord’s charges were kept to an absolute minimum.
In 2013 we were phoned by Mrs M Sharif who, having took over the lease of a first floor flat in Snaresbrook in July 2007. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical premises in Snaresbrook with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease ran out in 2080. Taking into account 54 years unexpired we estimated the premium to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of expenses.
An example of a Freehold Enfranchisement case 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 related to 2 flats. The unexpired residue of the current lease was 73.92 years.