Petersham residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold premises in Petersham with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances 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. |
| Birmingham Midshires | 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 also be not less than 75 years at the outset 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 |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Petersham leasehold, as your property will be more valuable and saleable in respect of lease length should you wish 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.
In the wake of 6 months of lengthy negotiations with the freeholder of her first floor flat in Petersham, Jade commenced the lease extension process as the 80 year mark was quickly advancing. The lease extension completed in May 2013. The landlord’s costs were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. S Cox who, having acquired a purpose-built flat in Petersham in November 2002. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable flats in Petersham with an extended lease were worth £198,800. The average amount of ground rent was £55 collected monthly. The lease elapsed on 11 April 2080. Having 55 years remaining we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus fees.
An example of a Lease Extension matter before the tribunal for a Petersham premises is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 60.45 years.