Padstow leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Flat owners in Padstow will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Padstow leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Eli, started to get near to the 80-year mark with the lease on his garden apartment in Padstow. In buying his property 19 years ago, the unexpired term was of minimal bearing. As luck would have it, he recognised he would soon be paying an inflated amount for Extending the lease. Eli extended the lease at the eleventh hour last July. Eli and the landlord who owned the flat above in the end settled on sum of £5,500 . If he not met the deadline, the sum would have become more costly by a minimum £1,050.
Last month we were phoned by Dr U Sánchez , who purchased a newly refurbished flat in Padstow in November 1999. We are asked if we could estimate the price would be to extend the lease by 90 years. Similar properties in Padstow with an extended lease were worth £174,200. The average amount of ground rent was £55 collected every twelve months. The lease elapsed in 2076. Considering the 51 years as a residual term we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
Last Autumn we were contacted by Mrs Chelsea King , who took over the lease of a one bedroom apartment in Padstow in January 1999. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar premises in Padstow with a long lease were worth £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease expired in 2096. Considering the 71 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.