With a residential leasehold premises in Pocklington, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Leasehold owners in Pocklington with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has less than 80 years remaining, under the relevant Act the landlord can calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
Using our service gives you better control over the value of your Pocklington leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Freddie owned a high value apartment in Pocklington being sold with a lease of just over 59 years outstanding. Freddie informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2010 we were e-mailed by Dr Georgina Young who, having purchased a purpose-built flat in Pocklington in October 2008. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar properties in Pocklington with an extended lease were worth £250,400. The average amount of ground rent was £65 billed every twelve months. The lease elapsed in 2089. Taking into account 64 years outstanding we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including costs.
Mrs S Roux bought a one bedroom apartment in Pocklington in July 2006. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative premises in Pocklington with a long lease were worth £184,000. The average amount of ground rent was £55 collected monthly. The lease lapsed in 2078. Taking into account 53 years outstanding we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.