As the the remaining lease term of a Pangbourne residential lease lessens so does its value and therefore the value of your property. Where the lease has, over 125 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner than later. The majority of flat owners in Pangbourne will meet the qualifying criteria; that being said a conveyancer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 gives you enhanced control over the value of your Pangbourne leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her leasehold apartment in Pangbourne, Chelsea commenced the lease extension process just as the lease was coming close to the crucial 80-year threshold. The legal work was concluded in October 2010. The landlord’s charges were kept to an absolute minimum.
In 2010 we were approached by Dr Morgan Patel who, having moved into a studio flat in Pangbourne in February 2011. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Pangbourne with a long lease were valued around £275,000. The average ground rent payable was £65 invoiced quarterly. The lease end date was on 23 September 2094. Given that there were 68 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Mr and Mrs. R Hall owned a newly refurbished flat in Pangbourne in April 2004. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative premises in Pangbourne with an extended lease were in the region of £213,600. The mid-range amount of ground rent was £60 collected yearly. The lease came to a finish in 2083. Considering the 57 years left we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including legals.