Chances are that where you own a flat in Snodland you actually own a long leasehold interest over your property
Leasehold properties in Snodland with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 enhanced control over the value of your Snodland leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months John, came very close to the eighty-year mark with the lease on his leasehold apartment in Snodland. In buying his property two decades ago, the lease term was of little bearing. Luckily, he realised he would imminently be paying way over the odds for a lease extension. John was able to extend his lease at the eleventh hour last September. John and the freeholder via the managing agents ultimately agreed on the final figure of £6,000 . If the lease had slid below eighty years, the price would have increased by at least £850.
Last Christmas we were e-mailed by Mrs F Evans , who moved into a basement apartment in Snodland in September 2012. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Snodland with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 invoiced annually. The lease concluded in 2088. Taking into account 62 years remaining we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.
Mr D Richardson completed a one bedroom flat in Snodland in November 1998. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Snodland with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced per annum. The lease came to a finish in 2099. Given that there were 73 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.