Patcham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Patcham tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Patcham you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Patcham leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term 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 decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Patcham can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge procuring Patcham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar owned a high value apartment in Patcham on the market with a lease of a little over 59 years outstanding. Omar on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last Winter we were contacted by Ms Rachael Rogers , who acquired a first floor flat in Patcham in August 2002. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar flats in Patcham with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 collected monthly. The lease came to a finish in 2079. Given that there were 53 years left we approximated the premium to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of costs.
Last month we were phoned by Mr and Mrs. K Walker , who owned a basement apartment in Patcham in June 1999. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical properties in Patcham with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 collected quarterly. The lease elapsed in 2090. Taking into account 64 years left we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including legals.