When it comes to long leasehold property in Sneyd Green, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Residents in Sneyd Green with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has under eighty years left, under the current legislation the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| 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 will provide you enhanced control over the value of your Sneyd Green leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jacob owned a conversion apartment in Sneyd Green on the market with a lease of a few days over 72 years outstanding. Jacob informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Jacob to invoke his statutory right. Jacob procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr Luke Lambert acquired a basement flat in Sneyd Green in August 1998. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative flats in Sneyd Green with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 billed every twelve months. The lease finished in 2076. Given that there were 50 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of fees.
Last Summer we were phoned by Ms U Davis , who owned a basement flat in Sneyd Green in May 1999. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar premises in Sneyd Green with 100 year plus lease were valued around £208,200. The average amount of ground rent was £65 invoiced annually. The lease ended in 2087. Taking into account 61 years outstanding we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of fees.