It’s a harsh certainty that a Snettisham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted 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 considering 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 slips under 80 years - otherwise a higher amount will be due. Most flat owners in Snettisham will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works |
Lease extensions in Snettisham can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Snettisham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Matthew, started to get near to the 80-year threshold with the lease on his purpose- built flat in Snettisham. Having bought his property two decades ago, the unexpired term was of little interest. As luck would have it, he recognised he needed to take action soon on Extending the lease. Matthew was able to extend his lease just under the wire in April. Matthew and the freeholder subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £1,025.
In 2010 we were called by Mr A Nelson who, having purchased a ground floor flat in Snettisham in July 2002. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical residencies in Snettisham with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease end date was in 2105. Given that there were 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
In 2014 we were called by Dr Kayleigh Bailey who, having moved into a first floor apartment in Snettisham in March 2002. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Snettisham with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out in 2094. Taking into account 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.