Pangbourne leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Pangbourne tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Pangbourne you really ought to see if your lease has between seventy and 90 years left. There are good reasons why a Pangbourne flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you increased control over the value of your Pangbourne leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her one bedroom apartment in Pangbourne, Chelsea initiated the lease extension process as the eighty year mark was quickly coming. The lease extension was concluded in June 2005. The freeholder’s fees were negotiated to about 700 GBP.
Mr and Mrs. Y Hall took over the lease of a recently refurbished flat in Pangbourne in August 2011. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative properties in Pangbourne with a long lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease termination date was in 2090. Given that there were 64 years left we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus fees.
In 2010 we were called by Mr Harrison Bell who, having owned a recently refurbished flat in Pangbourne in April 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Similar homes in Pangbourne with 100 year plus lease were worth £189,000. The average ground rent payable was £55 billed every twelve months. The lease elapsed on 7 July 2079. Considering the 53 years unexpired we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.