Pratt's Bottom leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls under 80 years - otherwise a higher premium will be payable. Leasehold owners in Pratt's Bottom will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Pratt's Bottom with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Pratt's Bottom can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Pratt's Bottom lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Cameron, came critically near to the eighty-year threshold with the lease on his one bedroom flat in Pratt's Bottom. Having bought his flat 19 years previously, the unexpired term was of little bearing. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Cameron extended the lease just in the nick of time last August. Cameron and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If he not met the deadline, the sum would have become more exhorbitant by at least £875.
In 2012 we were e-mailed by Ms Rhiannon Michel who, having acquired a garden apartment in Pratt's Bottom in October 2007. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar flats in Pratt's Bottom with a long lease were in the region of £225,800. The average ground rent payable was £60 invoiced every twelve months. The lease ran out on 23 August 2085. Given that there were 60 years remaining we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of professional charges.
An example of a Lease Extension case for a Pratt's Bottom premises is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case was in relation to 1 flat. The unexpired term was 50.57 years.