The closer a domestic lease in Pangbourne nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner as opposed to later. Many flat owners in Pangbourne will qualify for this right; that being said a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Pangbourne with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | 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. |
| 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. |
Lease extensions in Pangbourne can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Pangbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Gabriel was the the leasehold proprietor of a 2 bedroom apartment in Pangbourne on the market with a lease of a little over sixty years unexpired. Gabriel on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2011 we were e-mailed by Mrs Lauren Allen who, having moved into a recently refurbished apartment in Pangbourne in October 1999. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparative premises in Pangbourne with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease lapsed in 2083. Taking into account 58 years outstanding we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus legals.
Mr and Mrs. O Martinez was assigned a lease of a one bedroom apartment in Pangbourne in March 1998. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Pangbourne with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated on 15 November 2103. Having 78 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 not including professional charges.