The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Sneinton may extend the lease for a further ninety years under legislation. Please give careful consideration before delaying your Sneinton lease extension. Postponing that expense today simply escalates the amount you will ultimately be required to pay to extend the lease.
Leasehold residencies in Sneinton with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Sneinton can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Sneinton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Dexter, came perilously close to the eighty-year threshold with the lease on his ground floor apartment in Sneinton. In buying his property two decades ago, the lease term was of minimal bearing. Fortunately, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Dexter was able to extend his lease just under the wire last January. Dexter and the landlord who owned the flat above eventually settled on a premium of £5,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £900.
In 2013 we were called by Mr and Mrs. D Wood who, having took over the lease of a purpose-built flat in Sneinton in March 1998. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical residencies in Sneinton with an extended lease were valued about £205,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease end date was on 22 April 2105. Given that there were 79 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
Last Christmas we were called by Mr and Mrs. V Davis , who completed a one bedroom apartment in Sneinton in November 2001. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative properties in Sneinton with a long lease were valued about £275,000. The average amount of ground rent was £65 invoiced every twelve months. The lease ended on 13 June 2094. Considering the 68 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.