For anyone whose Pentonville home is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
Using our service gives you better control over the value of your Pentonville leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Toby was the the leasehold owner of a 2 bedroom apartment in Pentonville on the market with a lease of a little over 61 years outstanding. Toby on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to exercise his statutory right. Toby procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Mr and Mrs. R Sánchez took over the lease of a recently refurbished flat in Pentonville in September 2007. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Similar flats in Pentonville with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed yearly. The lease finished in 2098. Taking into account 72 years outstanding we approximated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus fees.
An example of a Lease Extension decision for a Pentonville flat is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case was in relation to 1 flat. The unexpired term was 66.8 years.