The value of Patcham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is less than eighty years
Leasehold residencies in Patcham with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Patcham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Patcham valuers.
In the wake of 9 months of protracted correspondence with the landlord of her purpose-built apartment in Patcham, Georgia commenced the lease extension process as the eighty year threshold was quickly approaching. The legal work was finalised in October 2009. The freeholder’s charges were negotiated to about 700 pounds.
Mr and Mrs. M Bertrand completed a ground floor flat in Patcham in April 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Patcham with a long lease were in the region of £254,200. The average ground rent payable was £60 invoiced per annum. The lease came to a finish on 6 November 2076. Having 51 years left we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including professional charges.
In 2009 we were phoned by Mrs Amber Lewis who, having acquired a one bedroom apartment in Patcham in October 2006. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative premises in Patcham with 100 year plus lease were in the region of £215,600. The average ground rent payable was £45 collected per annum. The lease ran out in 2087. Considering the 62 years remaining we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus fees.