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 becomes more expensive. Most owners of residential leasehold property in Pangbourne enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pangbourne you must see if your lease has between seventy and 90 years left. There are compelling reasons why a Pangbourne flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
Leasehold premises in Pangbourne with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Pangbourne,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pangbourne valuers.
Evan owned a high value flat in Pangbourne being sold with a lease of a few days over fifty eight years left. Evan on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Evan to exercise his statutory right. Evan procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were contacted by Dr Jack Girard who, having purchased a ground floor apartment in Pangbourne in November 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Pangbourne with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £60 billed annually. The lease elapsed on 2 September 2082. Having 56 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
Dr F Laurent owned a ground floor apartment in Pangbourne in April 2006. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Similar properties in Pangbourne with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease came to a finish on 9 January 2102. Taking into account 76 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.