Pangbourne leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Pangbourne will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Pangbourne with more than 100 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in Pangbourne,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pangbourne valuers.
Tommy was the the leasehold proprietor of a conversion apartment in Pangbourne on the market with a lease of a little over 61 years left. Tommy informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last month we were phoned by Dr V Ramírez , who bought a newly refurbished apartment in Pangbourne in November 2011. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Pangbourne with an extended lease were in the region of £248,000. The average amount of ground rent was £65 collected per annum. The lease elapsed in 2089. Having 63 years left we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus professional charges.
Last year we were e-mailed by Dr Oliver Bonnet , who was assigned a lease of a first floor apartment in Pangbourne in October 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Pangbourne with 100 year plus lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced yearly. The lease ended in 2078. Having 52 years remaining we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including costs.