It’s an underpublicised certainty that a Snettisham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Snettisham property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. Most flat owners in Snettisham will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Snettisham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Snettisham valuers.
Matthew was the the leasehold owner of a conversion flat in Snettisham on the market with a lease of a few days over 59 years remaining. Matthew on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2010 we were called by Mr and Mrs. Y Collins who, having completed a one bedroom flat in Snettisham in October 1998. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparative properties in Snettisham with 100 year plus lease were valued around £300,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expired on 12 June 2101. Considering the 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
In 2014 we were phoned by Mrs R Brooks who, having completed a recently refurbished apartment in Snettisham in July 2000. We are asked if we could estimate the price would be for a 90 year lease extension. Identical flats in Snettisham with a long lease were valued about £257,800. The average amount of ground rent was £65 billed annually. The lease lapsed in 2090. Having 65 years left we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.