The value of Sneyd Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Engaging our service will provide you increased control over the value of your Sneyd Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Teddy, came seriously near to the 80-year threshold with the lease on his first floor apartment in Sneyd Park. In buying his property two decades ago, the lease term was of no importance. Fortunately, he realised he needed to take action soon on Extending the lease. Teddy extended the lease at the eleventh hour in August. Teddy and the landlord eventually settled on the final figure of £5,500 . If the lease had slid to less than 80 years, the sum would have increased by at least £1,100.
Mrs Yasmin Bonnet took over the lease of a one bedroom flat in Sneyd Park in January 1997. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable properties in Sneyd Park with a long lease were valued about £191,400. The mid-range ground rent payable was £55 collected per annum. The lease terminated in 2080. Considering the 54 years outstanding we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including costs.
Mr and Mrs. U Lambert owned a first floor apartment in Sneyd Park in August 2006. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar properties in Sneyd Park with a long lease were valued around £295,000. The average ground rent payable was £45 billed annually. The lease concluded on 15 November 2100. Given that there were 74 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.