On the balance of probabilities if you own a flat in Saltney you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Chelsea 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. |
| 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 |
The conveyancers that we work with handle Saltney 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.
During the course of the last few months Samuel, came perilously near to the 80-year threshold with the lease on his ground floor apartment in Saltney. Having bought his property 19 years previously, the unexpired term was of no bearing. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Samuel was able to extend his lease at the eleventh hour last August. Samuel and the landlord ultimately settled on sum of £5,000 . If the lease had gone lower than 80 years, the amount would have gone up by at least £1,025.
In 2011 we were called by Mr and Mrs. M Leroy who, having purchased a one bedroom flat in Saltney in March 2012. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable flats in Saltney with 100 year plus lease were valued around £218,400. The mid-range ground rent payable was £60 billed monthly. The lease ended on 20 November 2084. Having 59 years outstanding we calculated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including fees.
Mr and Mrs. O Thomas completed a garden flat in Saltney in November 2010. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Saltney with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 collected yearly. The lease finished on 21 February 2104. Given that there were 79 years left we approximated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 exclusive of professional charges.