Pentonville leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. Leasehold owners in Pentonville will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Engaging our service will provide you better control over the value of your Pentonville leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tommy owned a high value apartment in Pentonville being sold with a lease of fraction over 61 years outstanding. Tommy informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Tommy to invoke his statutory right. Tommy procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Last Spring we were e-mailed by Mrs Chelsea Thomas , who owned a newly refurbished apartment in Pentonville in February 2003. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical residencies in Pentonville with 100 year plus lease were in the region of £265,200. The average ground rent payable was £65 billed per annum. The lease elapsed on 9 August 2092. Given that there were 66 years unexpired we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including expenses.
An example of a Lease Extension decision for a Pentonville residence 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 remaining number of years on the lease was 66.8 years.