Sneinton leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Sneinton will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Sneinton with in excess of 100 years left on the lease are often referred to as ‘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 buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service will provide you increased control over the value of your Sneinton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Dylan, started to get close to the 80-year threshold with the lease on his ground floor flat in Sneinton. Having bought his home 19 years ago, the unexpired term was of little relevance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Dylan was able to extend his lease just in the nick of time in August. Dylan and the freeholder via the management company ultimately agreed on sum of £5,500 . If he had missed the deadline, the premium would have become more costly by at least £1,000.
In 2010 we were called by Mr and Mrs. D Johnson who, having was assigned a lease of a purpose-built flat in Sneinton in April 2010. We are asked if we could approximate the price could be for a 90 year lease extension. Similar premises in Sneinton with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease termination date was on 16 March 2090. Given that there were 65 years left we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus professional charges.
In 2009 we were approached by Ms M Hernández who, having purchased a recently refurbished flat in Sneinton in February 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative homes in Sneinton with an extended lease were worth £191,400. The mid-range ground rent payable was £55 collected per annum. The lease expired on 21 March 2079. Having 54 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus legals.