The only way is down when it comes to Pimlico lease terms. Pimlico properties that have a residual term shorter than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will rise.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 will provide you enhanced control over the value of your Pimlico leasehold, as your property will be more valuable and marketable in respect of 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.
Following unsuccessful correspondence with the landlord of her purpose-built flat in Pimlico, Natasha started the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction completed in May 2014. The freeholder’s charges were negotiated to a tad over 650 pounds.
Ms Danielle Girard completed a basement flat in Pimlico in August 2010. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar homes in Pimlico with a long lease were worth £174,200. The average ground rent payable was £55 collected every twelve months. The lease ended in 2077. Given that there were 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Pimlico residence 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 related to 2 flats. The unexpired residue of the current lease was 56 years.