Pagham leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Pagham will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
The lawyers that we work with procure Pagham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Half a year ago Freddie, came very close to the 80-year threshold with the lease on his studio apartment in Pagham. In buying his property two decades ago, the length of the lease was of little concern. by good luck, he realised he would imminently be paying an inflated amount for a lease extension. Freddie extended the lease just under the wire last June. Freddie and the freeholder eventually agreed on an amount of £5,500 . If the lease had descended lower than eighty years, the amount would have escalated by at least £975.
Ms T Evans completed a purpose-built flat in Pagham in August 2011. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Pagham with 100 year plus lease were in the region of £245,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed in 2094. Considering the 68 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Dr Megan Bennett took over the lease of a studio flat in Pagham in July 2010. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Pagham with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease ran out in 2105. Taking into account 79 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.