On the balance of probabilities if you own a flat in Pembroke you actually own a long leasehold interest over your property
Leasehold properties in Pembroke with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Pembroke 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 conveyancer we work with provide it.
Following unsuccessful discussions with the landlord of her basement flat in Pembroke, Amy commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The lease extension completed in March 2015. The landlord’s fees were kept to an absolute minimum.
In 2014 we were approached by Dr Victoria Díaz who, having took over the lease of a newly refurbished flat in Pembroke in January 2012. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar properties in Pembroke with a long lease were valued about £290,000. The average ground rent payable was £60 collected quarterly. The lease terminated in 2105. Given that there were 80 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
Last Autumn we were contacted by Dr Felix Reed , who owned a studio flat in Pembroke in June 2005. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Comparable premises in Pembroke with a long lease were in the region of £200,800. The average amount of ground rent was £65 billed monthly. The lease concluded in 2085. Having 60 years remaining we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of fees.