When it comes to residential leasehold property in Sneyd Park, 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 extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Leasehold owners in Sneyd Park with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once the lease term has under eighty years remaining, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Sneyd Park can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Sneyd Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Ethan, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Sneyd Park. In buying his home two decades ago, the length of the lease was of little significance. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Ethan was able to extend his lease just under the wire in January. Ethan and the landlord who owned the flat above subsequently settled on sum of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £975.
Ms Sian Nelson took over the lease of a one bedroom apartment in Sneyd Park in March 2004. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative residencies in Sneyd Park with a long lease were valued about £198,800. The mid-range ground rent payable was £55 billed annually. The lease termination date was in 2080. Having 55 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of costs.
In 2013 we were e-mailed by Dr B Torres who, having completed a basement flat in Sneyd Park in March 1999. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Identical flats in Sneyd Park with a long lease were worth £300,000. The mid-range ground rent payable was £50 billed per annum. The lease lapsed on 16 February 2101. Given that there were 76 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.