The closer a domestic lease in Saltney gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in Saltney will qualify for this right; nevertheless a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Saltney leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold owner of a studio flat in Saltney on the market with a lease of a little over fifty eight years remaining. Ollie informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
Dr L Ward purchased a studio flat in Saltney in May 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in Saltney with a long lease were valued about £200,000. The average ground rent payable was £50 billed yearly. The lease concluded in 2103. Considering the 78 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Mrs P Campbell purchased a first floor apartment in Saltney in June 2012. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Saltney with a long lease were in the region of £267,600. The average amount of ground rent was £65 billed quarterly. The lease termination date was in 2092. Given that there were 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of costs.