Pangbourne leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Pangbourne enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Pangbourne you would be well advised to see if your lease has between 70 and 90 years left. There are good reasons why a Pangbourne flat owner with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Pangbourne with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
Lease extensions in Pangbourne can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
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.
Reuben was the the leasehold owner of a 2 bedroom apartment in Pangbourne being sold with a lease of a little over 61 years left. Reuben on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking 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 payable on a lease extension were Reuben to exercise his statutory right. Reuben procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last Spring we were called by Mr Jake Bernard , who moved into a one bedroom apartment in Pangbourne in June 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Pangbourne with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 billed quarterly. The lease elapsed in 2095. Considering the 70 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Last Summer we were phoned by Mrs U Phillips , who purchased a basement flat in Pangbourne in April 1996. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Pangbourne with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced monthly. The lease ended in 2084. Considering the 59 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 plus costs.