Partington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Partington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Partington you should see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Partington leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Partington with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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 are not acceptable. 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; |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Following unsuccessful negotiations with the landlord of her ground floor apartment in Partington, Chloe started the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work completed in August 2015. The landlord’s charges were kept to an absolute minimum.
Last Summer we were called by Mr John Mercier , who acquired a recently refurbished flat in Partington in August 2004. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparative residencies in Partington with an extended lease were worth £264,000. The average ground rent payable was £60 invoiced monthly. The lease elapsed on 24 April 2079. Having 53 years left we estimated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus costs.
Last Spring we were approach by Dr Madeleine Baker , who bought a garden flat in Partington in November 2012. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Partington with an extended lease were valued about £225,400. The average amount of ground rent was £45 invoiced quarterly. The lease finished on 13 November 2090. Having 64 years as a residual term we calculated the premium to the landlord for the lease extension to be between £15,200 and £17,600 not including expenses.