For anyone whose Sneinton home is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
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 conveyancer we work with provide it.
Subsequent to lengthy negotiations with the freeholder of her basement flat in Sneinton, Sian started the lease extension process just as the lease was nearing the critical eighty-year deadline. The legal work was finalised in July 2006. The landlord’s fees were negotiated to a tad over 600 GBP.
In 2014 we were phoned by Mr and Mrs. A Morel who, having moved into a basement apartment in Sneinton in April 2012. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Sneinton with a long lease were in the region of £285,000. The average ground rent payable was £45 billed per annum. The lease concluded in 2098. Considering the 72 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.
In 2014 we were approached by Mr Felix Gómez who, having took over the lease of a studio apartment in Sneinton in November 1997. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Sneinton with 100 year plus lease were valued around £233,200. The average ground rent payable was £60 invoiced annually. The lease finished on 21 April 2087. Having 61 years remaining we approximated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of fees.