It’s an underpublicised certainty that a Sneyd Green 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 Sneyd Green property prices.Where your lease has approximately 90 years left, you should 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 eighty years - otherwise a higher amount will be due. The majority of flat owners in Sneyd Green will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Sneyd Green with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
After unsuccessful correspondence with the freeholder of her basement apartment in Sneyd Green, Danielle commenced the lease extension process as the 80 year deadline was swiftly approaching. The legal work was concluded in November 2007. The freeholder’s charges were restricted to below 650 GBP.
Last Winter we were approach by Mr Milo Martínez , who was assigned a lease of a one bedroom flat in Sneyd Green in October 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative homes in Sneyd Green with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 billed monthly. The lease came to a finish on 20 February 2084. Given that there were 59 years unexpired we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.
Last March we were phoned by Mr and Mrs. J Turner , who bought a purpose-built flat in Sneyd Green in March 1998. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Identical residencies in Sneyd Green with an extended lease were worth £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ran out in 2095. Having 70 years remaining we approximated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of fees.