When it comes to domestic leasehold property in Padstow, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Padstow with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has under 80 years remaining, under the current legislation the landlord can calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives 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 decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jayden was the the leasehold proprietor of a studio apartment in Padstow on the market with a lease of a little over 72 years unexpired. Jayden on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mr Caleb Richardson bought a studio apartment in Padstow in August 2011. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Identical residencies in Padstow with a long lease were valued about £198,800. The average amount of ground rent was £55 billed yearly. The lease came to a finish on 28 June 2079. Considering the 55 years remaining we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of costs.
Last Autumn we were e-mailed by Mr and Mrs. C Laurent , who purchased a recently refurbished apartment in Padstow in May 2002. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Similar flats in Padstow with an extended lease were in the region of £295,000. The average amount of ground rent was £50 billed quarterly. The lease ended in 2099. Having 75 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.