With a residential leasehold property in Pyle, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years left. Leasehold owners in Pyle with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has below eighty years remaining, under the current Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Pyle with more than 100 years left 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Pyle can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
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 Pyle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew was the the leasehold proprietor of a high value apartment in Pyle being sold with a lease of just over sixty years left. Matthew informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Matthew to invoke his statutory right. Matthew procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2012 we were approached by Dr Sophie López who, having acquired a one bedroom flat in Pyle in October 1997. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in Pyle with a long lease were worth £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed on 28 January 2101. Having 76 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last year we were called by Ms A Nelson , who took over the lease of a ground floor apartment in Pyle in June 1996. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Pyle with an extended lease were valued about £176,200. The mid-range amount of ground rent was £65 billed annually. The lease concluded in 2081. Considering the 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including expenses.