Snaresbrook leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Snaresbrook residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Snaresbrook you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Snaresbrook leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
Leasehold properties in Snaresbrook with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Snaresbrook leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Dylan was the the leasehold proprietor of a conversion apartment in Snaresbrook being marketed with a lease of a few days over 72 years unexpired. Dylan informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend 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 Dylan to exercise his statutory right. Dylan procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Mrs I Martin took over the lease of a ground floor apartment in Snaresbrook in July 2008. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Snaresbrook with 100 year plus lease were valued about £210,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish on 1 August 2105. Having 80 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal 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 term was 73.92 years.