With a residential leasehold property in Pratt's Bottom, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years remaining. Leasehold owners in Pratt's Bottom with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. When a lease has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Pratt's Bottom with more than 100 years outstanding on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Pratt's Bottom can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring 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.
During the course of the last few months Toby, came seriously near to the eighty-year mark with the lease on his purpose- built apartment in Pratt's Bottom. In buying his property two decades ago, the unexpired term was of minimal interest. Luckily, he noticed he would soon be paying way over the odds for a lease extension. Toby arranged for a lease extension at the eleventh hour in August. Toby and the freeholder via the management company subsequently settled on the final figure of £5,000 . If the lease had slid below 80 years, the figure would have escalated by at least £975.
Dr Cameron Fournier owned a studio flat in Pratt's Bottom in November 2012. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparative flats in Pratt's Bottom with an extended lease were in the region of £184,000. The average ground rent payable was £55 collected quarterly. The lease concluded on 14 April 2078. Taking into account 53 years remaining we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of costs.
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 affected 1 flat. The unexpired residue of the current lease was 50.57 years.