There is no doubt about it a leasehold flat or house in Patcham is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Patcham will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Patcham with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 conveyancers that we work with undertake Patcham 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 conveyancer we work with provide it.
Ollie owned a studio flat in Patcham on the market with a lease of a little over 59 years outstanding. Ollie on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Ollie to invoke his statutory right. Ollie procured expert legal guidance and secured satisfactory deal informally and sell the property.
In 2011 we were contacted by Ms U Green who, having took over the lease of a newly refurbished apartment in Patcham in June 2001. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparative premises in Patcham with a long lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease expired in 2098. Considering the 72 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
Last Autumn we were e-mailed by Mr Milo Martin , who completed a one bedroom flat in Patcham in June 2001. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Similar premises in Patcham with 100 year plus lease were valued about £261,600. The average ground rent payable was £60 collected yearly. The lease ended on 17 July 2078. Taking into account 52 years outstanding we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 not including fees.