It’s an underpublicised truth that a Snettisham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Snettisham property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Snettisham will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Using our service gives you better control over the value of your Snettisham leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the landlord of her first floor flat in Snettisham, Jodie started the lease extension process as the 80 year deadline was quickly coming. The transaction completed in June 2005. The landlord’s costs were negotiated to below 650 pounds.
Mr and Mrs. T Pérez took over the lease of a garden apartment in Snettisham in August 2002. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Similar homes in Snettisham with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease ended on 7 February 2100. Given that there were 74 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.
In 2014 we were e-mailed by Mr Teddy Moreau who, having purchased a one bedroom flat in Snettisham in March 2008. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparable flats in Snettisham with an extended lease were valued about £243,000. The average ground rent payable was £65 billed every twelve months. The lease came to a finish in 2089. Considering the 63 years remaining we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus fees.