The market value of a leasehold property in Sneyd Green is impacted by how long the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that all matters can be finalised prior to the 80 year cut off point. Leasehold Reform legislation enables Sneyd Green qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 increased control over the value of your Sneyd Green leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the freeholder of her first floor flat in Sneyd Green, Olivia commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension was finalised in October 2012. The landlord’s fees were kept to an absolute minimum.
Last Winter we were e-mailed by Mr and Mrs. B White , who acquired a studio flat in Sneyd Green in September 1999. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical properties in Sneyd Green with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2083. Having 57 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.
In 2012 we were contacted by Mr and Mrs. N Flores who, having moved into a basement apartment in Sneyd Green in June 2003. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparable flats in Sneyd Green with 100 year plus lease were valued about £245,000. The mid-range amount of ground rent was £50 billed annually. The lease concluded in 2094. Taking into account 68 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.