There is no doubt about it a leasehold property in Paddock Wood is a wasting asset as a result of the shortening lease. Where the residual term has, more than 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Paddock Wood will meet the qualifying criteria; however a conveyancer should be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Paddock Wood with more than one hundred 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Paddock Wood,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Paddock Wood valuers.
Last year Joseph, came precariously close to the eighty-year mark with the lease on his studio apartment in Paddock Wood. Having purchased his home 19 years previously, the length of the lease was of little interest. Fortunately, he recognised he would imminently be paying way over the odds for a lease extension. Joseph arranged for a lease extension just under the wire in April. Joseph and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If he had missed the deadline, the premium would have become more costly by a minimum £875.
In 2009 we were called by Mr and Mrs. F Cooper who, having moved into a basement apartment in Paddock Wood in August 2003. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical properties in Paddock Wood with 100 year plus lease were worth £168,800. The average amount of ground rent was £60 invoiced every twelve months. The lease expiry date was on 23 July 2081. Taking into account 55 years outstanding we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.
Last month we were called by Dr Leah Leroy , who moved into a ground floor flat in Paddock Wood in August 2006. The question was if we could estimate the price would be to extend the lease by an additional years. Identical premises in Paddock Wood with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced monthly. The lease termination date was on 4 August 2092. Taking into account 66 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.