Sneinton leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be payable. Leasehold owners in Sneinton will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Sneinton with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancers that we work with undertake Sneinton 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.
Last October Oscar, started to get near to the eighty-year mark with the lease on his one bedroom flat in Sneinton. In buying his flat two decades ago, the length of the lease was of little concern. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Oscar extended the lease just under the wire in August. Oscar and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If he had missed the deadline, the amount would have increased by a minimum £1,050.
Mr and Mrs. Y Clarke moved into a one bedroom flat in Sneinton in September 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical flats in Sneinton with an extended lease were worth £225,800. The average ground rent payable was £60 billed annually. The lease terminated in 2086. Given that there were 60 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 plus legals.
In 2014 we were contacted by Mrs N Laurent who, having was assigned a lease of a purpose-built flat in Sneinton in June 1999. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparative flats in Sneinton with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 collected per annum. The lease ran out on 7 January 2106. Given that there were 80 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.