Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Paddock Wood. Inevitably, the length of lease remaining reduces over time. This is often ignored and only becomes a problem when the flat or house has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Paddock Wood have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give due deliberation before putting off your Paddock Wood lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Yorkshire 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. |
Engaging our service will provide you enhanced control over the value of your Paddock Wood leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Tyler, came perilously near to the 80-year mark with the lease on his one bedroom apartment in Paddock Wood. Having purchased his property 19 years previously, the unexpired term was of minimal bearing. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Tyler was able to extend his lease just under the wire last June. Tyler and the landlord in the end settled on a premium of £5,000 . If he not met the deadline, the figure would have gone up by at least £1,100.
Mr and Mrs. K Thomas completed a ground floor flat in Paddock Wood in June 1995. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative premises in Paddock Wood with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 collected quarterly. The lease finished in 2095. Taking into account 70 years unexpired we estimated the premium to the landlord for the lease extension to be between £10,500 and £12,000 plus expenses.
Last Winter we were e-mailed by Mr and Mrs. P Morris , who completed a garden apartment in Paddock Wood in August 2005. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative premises in Paddock Wood with an extended lease were in the region of £246,800. The average ground rent payable was £60 invoiced quarterly. The lease elapsed on 21 June 2075. Considering the 50 years remaining we calculated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus legals.