With a residential leasehold property in Papworth Everard, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Residents in Papworth Everard with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once the lease term has under eighty years left, under the current legislation the freeholder is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Papworth Everard with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 Papworth Everard can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Papworth Everard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful discussions with the landlord of her studio flat in Papworth Everard, Bethan commenced the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in August 2007. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. A Miller , who took over the lease of a purpose-built apartment in Papworth Everard in April 2007. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative residencies in Papworth Everard with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 collected annually. The lease came to a finish in 2095. Given that there were 70 years remaining we approximated the compensation to the freeholder for the lease extension to be within £10,500 and £12,000 exclusive of expenses.
Dr Gabriel Moore moved into a one bedroom apartment in Papworth Everard in May 2006. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable homes in Papworth Everard with a long lease were in the region of £246,800. The average amount of ground rent was £60 collected per annum. The lease came to a finish in 2075. Considering the 50 years as a residual term we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 plus costs.