With a domestic leasehold property in Snodland, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should 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 gets disproportionately greater notably when there are fewer than 80 years left. Residents in Snodland with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has under eighty years outstanding, under the relevant Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Snodland leasehold, as your property will be more valuable and marketable in respect 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.
In the wake of 6 months of protracted discussions with the landlord of her two bedroom flat in Snodland, Imogen initiated the lease extension process just as her lease was nearing the all-important 80-year deadline. The transaction completed in April 2010. The landlord’s costs were restricted to about 550 pounds.
In 2010 we were phoned by Mr and Mrs. I Alexander who, having took over the lease of a studio apartment in Snodland in November 2007. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparable premises in Snodland with an extended lease were valued about £285,000. The mid-range ground rent payable was £55 billed per annum. The lease lapsed in 2104. Taking into account 79 years remaining we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Mr and Mrs. C Allen purchased a one bedroom apartment in Snodland in January 2008. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Snodland with 100 year plus lease were worth £193,400. The average ground rent payable was £65 collected yearly. The lease elapsed on 14 September 2084. Given that there were 59 years left we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.