The market value of Pratt's Bottom leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is less than 80 years
Leasehold premises in Pratt's Bottom with more than 100 years remaining 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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 are not acceptable. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
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 lawyer we work with provide it.
Off the back of lengthy negotiations with the freeholder of her leasehold apartment in Pratt's Bottom, Lydia initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The lease extension was concluded in November 2007. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were called by Dr T Kelly , who was assigned a lease of a one bedroom flat in Pratt's Bottom in January 2012. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Pratt's Bottom with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished in 2097. Considering the 71 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Pratt's Bottom property 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.