With a domestic leasehold premises in Petersham, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years left. Anyone in Petersham with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the relevant legislation the landlord is entitled to calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Petersham with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Petersham 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 lawyer we work with provide it.
Last October Tyler, came seriously close to the 80-year mark with the lease on his two bedroom flat in Petersham. In buying his property two decades ago, the lease term was of no interest. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Tyler arranged for a lease extension just in the nick of time last March. Tyler and the freeholder subsequently agreed on a premium of £5,000 . If the lease had dropped to less than 80 years, the price would have increased by at least £975.
In 2013 we were phoned by Mrs Zoe Gunderson who, having moved into a one bedroom flat in Petersham in April 1999. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative premises in Petersham with a long lease were in the region of £300,000. The average amount of ground rent was £50 billed yearly. The lease ended on 2 October 2102. Given that there were 76 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension case for a Petersham residence 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 affected 1 flat. The remaining number of years on the lease was 60.45 years.