The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Patcham can extend the lease for a further 90 years in accordance with statute. Do give careful consideration before delaying your Patcham lease extension. Shelving that expense now simply increases the price you will eventually be required to pay for a lease extension.
Leasehold properties in Patcham with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Patcham leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Connor owned a 2 bedroom flat in Patcham being marketed with a lease of just over fifty eight years remaining. Connor on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Connor to invoke his statutory right. Connor obtained expert advice and secured satisfactory deal informally and readily saleable.
Mr O Green acquired a garden flat in Patcham in November 2012. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparable residencies in Patcham with 100 year plus lease were valued around £208,200. The average ground rent payable was £65 collected annually. The lease finished on 13 March 2087. Taking into account 61 years outstanding we calculated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus expenses.
Ms A Kelly completed a recently refurbished apartment in Patcham in January 2009. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparable residencies in Patcham with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 collected yearly. The lease lapsed on 18 April 2098. Having 72 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.