With a domestic leasehold premises in Pratt's Bottom, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than eighty years left. Anyone in Pratt's Bottom with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has under eighty years left, under the relevant statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
Lender | Requirement |
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Accord Mortgages | 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. |
Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
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. |
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 |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Pratt's Bottom,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pratt's Bottom valuers.
In the wake of 6 months of protracted negotiations with the landlord of her purpose-built flat in Pratt's Bottom, Courtney initiated the lease extension process as the eighty year threshold was fast coming. The legal work was concluded in February 2014. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were phoned by Mr A Hill who, having moved into a studio apartment in Pratt's Bottom in November 1995. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar flats in Pratt's Bottom with an extended lease were valued around £267,600. The average ground rent payable was £65 invoiced per annum. The lease terminated on 7 August 2091. Taking into account 67 years left we approximated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus professional charges.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The number of years remaining on the existing lease(s) was 50.57 years.