The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Pimlico can extend the lease for an additional 90 years in accordance with statute. Do think carefully before delaying your Pimlico lease extension. Postponing that expense today simply escalates the amount you will eventually have to pay for a lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Pimlico,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pimlico valuers.
Arthur was the the leasehold owner of a high value apartment in Pimlico on the market with a lease of a little over fifty eight years left. Arthur informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Arthur to invoke his statutory right. Arthur procured expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Autumn we were called by Mr and Mrs. N Collins , who purchased a studio flat in Pimlico in February 2009. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical flats in Pimlico with an extended lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease concluded in 2098. Having 72 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.
An example of a Lease Extension case for a Pimlico premises is Flats 12A & 19, Evelyn Mansions Carlisle Place in June 2009. The Tribunal held that the price to be paid for the new lease of Flat 12A is £168,824, For the other flat the price was set at £169,110 This case affected 2 flats. The unexpired lease term was 56 years.