The nearer a domestic lease in Pratt's Bottom nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 100 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner rather than later. Many flat owners in Pratt's Bottom will qualify for this right; however a lawyer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Pratt's Bottom with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Pratt's Bottom can be a difficult process. We recommend you secure professional help from a conveyancer 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 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.
Subsequent to unsuccessful correspondence with the freeholder of her purpose-built flat in Pratt's Bottom, Georgia commenced the lease extension process as the eighty year threshold was swiftly coming. The lease extension completed in July 2015. The freeholder’s costs were restricted to a tad over 700 pounds.
In 2012 we were called by Mr Matthew Anderson who, having completed a one bedroom apartment in Pratt's Bottom in March 2002. The question was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Similar flats in Pratt's Bottom with a long lease were worth £216,000. The average ground rent payable was £60 collected per annum. The lease ended in 2084. Given that there were 58 years unexpired we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including 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 related to 1 flat. The remaining number of years on the lease was 50.57 years.