Sneinton leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Sneinton will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Sneinton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sneinton valuers.
In the wake of 6 months of protracted correspondence with the landlord of her basement flat in Sneinton, Daisy commenced the lease extension process as the 80 year threshold was fast advancing. The legal work was finalised in February 2013. The freeholder’s costs were kept to an absolute minimum.
Last month we were contacted by Ms Madeleine Pérez , who moved into a one bedroom apartment in Sneinton in September 2009. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in Sneinton with an extended lease were worth £295,000. The average amount of ground rent was £45 collected yearly. The lease termination date was in 2100. Given that there were 74 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
In 2009 we were called by Mr Jackson Lewis who, having owned a purpose-built flat in Sneinton in August 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Sneinton with an extended lease were worth £243,000. The average ground rent payable was £65 billed per annum. The lease finished on 25 April 2089. Given that there were 63 years outstanding we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including expenses.