Unfortunately that a Partington residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Partington property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Partington will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Partington with more than one hundred years left on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Partington,the lease extension experts 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 Partington valuers.
Half a year ago Nathan, started to get near to the 80-year threshold with the lease on his studio apartment in Partington. Having purchased his flat 18 years previously, the unexpired term was of little interest. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Nathan arranged for a lease extension just under the wire last May. Nathan and the freeholder eventually settled on a premium of £6,000 . If the lease had descended to less than eighty years, the amount would have increased by a minimum £850.
In 2010 we were called by Mr Nathan Walker who, having was assigned a lease of a newly refurbished flat in Partington in July 2011. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical flats in Partington with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 billed yearly. The lease expired in 2098. Having 72 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Dr Max Bertrand owned a ground floor apartment in Partington in February 1996. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Identical homes in Partington with 100 year plus lease were valued about £261,600. The mid-range amount of ground rent was £60 billed annually. The lease ran out on 13 September 2078. Taking into account 52 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus legals.