On the balance of probabilities where you own a flat in Padstow you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Padstow leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the freeholder of her basement apartment in Padstow, Jodie commenced the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work completed in March 2013. The landlord’s charges were restricted to approximately 450 GBP.
Last month we were called by Mr Sam David , who moved into a first floor flat in Padstow in July 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Padstow with a long lease were valued about £233,200. The mid-range amount of ground rent was £60 billed per annum. The lease expired on 11 October 2083. Given that there were 61 years remaining we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including professional charges.
Last month we were contacted by Ms Georgina Petit , who was assigned a lease of a studio apartment in Padstow in July 1996. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative premises in Padstow with 100 year plus lease were in the region of £166,800. The average amount of ground rent was £50 invoiced monthly. The lease ran out on 7 August 2072. Given that there were 50 years remaining we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus fees.