The re-sale value of a leasehold property in Snodland depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be finalised ahead of the eighty year threshold. Leasehold Reform legislation entitles Snodland qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of 90 years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
The conveyancers that we work with procure Snodland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing lengthy discussions with the landlord of her studio flat in Snodland, Alice commenced the lease extension process as the 80 year threshold was swiftly nearing. The lease extension was concluded in April 2012. The landlord’s charges were negotiated to less than 500 pounds.
Ms Y Murphy owned a first floor flat in Snodland in May 2004. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable premises in Snodland with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed on 20 September 2092. Considering the 66 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.
Last Summer we were e-mailed by Dr R Ali , who moved into a one bedroom apartment in Snodland in May 2003. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparative premises in Snodland with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease finished in 2103. Given that there were 77 years remaining we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.