Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Sneyd Green. Clearly, the length of lease left shortens over time. This may pass by relatively unnoticed when the flat or house has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Sneyd Green have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Please give careful consideration before delaying your Sneyd Green lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Sneyd Green with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Sneyd Green 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 lawyer we work with provide it.
Following protracted correspondence with the landlord of her one bedroom flat in Sneyd Green, Naomi commenced the lease extension process just as her lease was approaching the all-important eighty-year deadline. The lease extension was concluded in September 2008. The freeholder’s costs were restricted to slightly above 450 GBP.
In 2010 we were phoned by Mr and Mrs. O Allen who, having owned a recently refurbished apartment in Sneyd Green in April 2010. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative residencies in Sneyd Green with an extended lease were in the region of £256,600. The average ground rent payable was £60 collected quarterly. The lease terminated in 2078. Given that there were 52 years outstanding we approximated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 not including costs.
Mr W Taylor owned a studio apartment in Sneyd Green in November 2009. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative flats in Sneyd Green with 100 year plus lease were valued about £218,000. The mid-range ground rent payable was £45 invoiced monthly. The lease came to a finish in 2089. Given that there were 63 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of legals.