With a residential leasehold premises in Sneyd Park, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than 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 less than 80 years left. Leasehold owners in Sneyd Park with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has fewer than 80 years remaining, under the relevant legislation the freeholder can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Sneyd Park with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Sneyd Park,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sneyd Park valuers.
Off the back of lengthy negotiations with the landlord of her ground floor apartment in Sneyd Park, Niamh started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The lease extension was finalised in September 2012. The freeholder’s costs were negotiated to under 500 pounds.
Last Spring we were phoned by Dr Molly Cox , who moved into a first floor apartment in Sneyd Park in June 2002. The question was if we could approximate the premium would be to extend the lease by an additional years. Comparable residencies in Sneyd Park with a long lease were worth £233,200. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish on 12 January 2086. Taking into account 61 years left we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of legals.
Mr and Mrs. I Smith was assigned a lease of a purpose-built apartment in Sneyd Park in February 2010. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparative homes in Sneyd Park with 100 year plus lease were worth £166,800. The average amount of ground rent was £50 collected annually. The lease concluded on 25 June 2075. Taking into account 50 years as a residual term we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of legals.