Partington leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Leasehold owners in Partington will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake Partington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
David owned a studio flat in Partington being sold with a lease of fraction over 61 years unexpired. David on an informal basis contacted his landlord a well known local-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 subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were David to invoke his statutory right. David procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Ms E Mitchell bought a purpose-built apartment in Partington in August 2008. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Partington with an extended lease were valued about £191,000. The average amount of ground rent was £65 collected monthly. The lease came to a finish in 2083. Taking into account 58 years left we approximated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of legals.
In 2010 we were approached by Mr Blake Simon who, having owned a first floor apartment in Partington in October 2006. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparable premises in Partington with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease expired on 18 October 2094. Considering the 69 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.