The re-sale value of a leasehold property in Sneyd Green is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded ahead of the 80 year mark. Current legislation entitles Sneyd Green qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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 conveyancer we work with provide it.
Following protracted discussions with the landlord of her ground floor apartment in Sneyd Green, Jodie started the lease extension process as the 80 year threshold was swiftly coming. The lease extension completed in July 2005. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. B Ward completed a basement flat in Sneyd Green in October 2001. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Comparative properties in Sneyd Green with 100 year plus lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease elapsed on 9 February 2096. Taking into account 71 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
In 2014 we were called by Mr Harry Clarke who, having purchased a one bedroom apartment in Sneyd Green in June 1996. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative properties in Sneyd Green with a long lease were in the region of £254,200. The average amount of ground rent was £60 invoiced annually. The lease came to a finish on 24 August 2076. Given that there were 51 years as a residual term we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of costs.