For those whose Pratt's Bottom flat is held on a long lease, the message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Pratt's Bottom with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Halifax | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancers that we work with procure Pratt's Bottom lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Ben owned a conversion flat in Pratt's Bottom on the market with a lease of a few days over sixty years outstanding. Ben on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Ben to invoke his statutory right. Ben procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mr G Scott owned a garden flat in Pratt's Bottom in February 2008. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative residencies in Pratt's Bottom with 100 year plus lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed per annum. The lease elapsed on 20 January 2085. Given that there were 59 years unexpired we approximated the premium to the landlord to extend the lease to be between £27,600 and £31,800 plus fees.
An example of a Lease Extension matter before the tribunal for a Pratt's Bottom residence 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 remaining number of years on the lease was 50.57 years.