For anyone whose Pocklington home is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold properties in Pocklington with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Pocklington leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Ollie, started to get close to the 80-year threshold with the lease on his first floor apartment in Pocklington. Having bought his flat two decades ago, the unexpired term was of little significance. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. Ollie arranged for a lease extension at the eleventh hour in January. Ollie and the freeholder subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the amount would have become more costly by a minimum £1,150.
In 2012 we were phoned by Ms Rosie Sharif who, having took over the lease of a studio flat in Pocklington in November 2007. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparable residencies in Pocklington with an extended lease were in the region of £216,000. The average ground rent payable was £60 billed annually. The lease expired on 4 March 2084. Having 58 years left we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.
Mr and Mrs. A Roberts owned a newly refurbished apartment in Pocklington in September 2008. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparable properties in Pocklington with 100 year plus lease were valued about £200,000. The average amount of ground rent was £50 collected monthly. The lease finished on 27 September 2104. Considering the 78 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.