The re-sale value of a leasehold property in Pocklington depends on how long the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when the lease still has 82 years remaining so that all matters can be finalised well before the 80 year mark. Current legislation enables Pocklington qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a nominal rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Pocklington can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Pocklington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the freeholder of her basement apartment in Pocklington, Jodie initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The transaction completed in July 2011. The freeholder’s charges were kept to an absolute minimum.
Last Summer we were contacted by Mr and Mrs. D Ward , who acquired a purpose-built apartment in Pocklington in August 2004. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Pocklington with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease concluded on 2 November 2075. Given that there were 51 years outstanding we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.
In 2014 we were called by Mr and Mrs. J Moreau who, having bought a first floor flat in Pocklington in September 2005. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Pocklington with an extended lease were worth £285,000. The average ground rent payable was £45 billed per annum. The lease terminated on 3 February 2095. Having 71 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.