The re-sale value of a leasehold property in Snodland depends on how long the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised well before the 80 year mark. Leasehold Reform legislation entitles Snodland qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Snodland with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a landlord in Snodland,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Snodland valuers.
After unsuccessful discussions with the freeholder of her first floor flat in Snodland, Nicole commenced the lease extension process as the 80 year threshold was fast advancing. The lease extension was finalised in April 2014. The landlord’s charges were negotiated to slightly above 650 GBP.
Last Winter we were phoned by Mr Leo Nelson , who acquired a garden apartment in Snodland in February 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical premises in Snodland with a long lease were worth £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease terminated on 13 January 2095. Taking into account 69 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last Christmas we were contacted by Mrs Kayleigh López , who completed a one bedroom apartment in Snodland in January 2002. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Comparative premises in Snodland with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 collected annually. The lease finished in 2106. Taking into account 80 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.