Chances are that if you own a flat in Patcham you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Patcham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Patcham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Alex, came dangerously near to the 80-year threshold with the lease on his leasehold apartment in Patcham. Having bought his property 18 years ago, the unexpired term was of little relevance. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Alex was able to extend his lease at the eleventh hour in April. Alex and the freeholder subsequently agreed on a premium of £6,000 . If he failed to meet the deadline, the price would have become more costly by a minimum £1,075.
In 2013 we were e-mailed by Mr and Mrs. Y Ali who, having bought a purpose-built apartment in Patcham in September 1997. We are asked if we could approximate the price could be for a 90 year lease extension. Identical residencies in Patcham with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 billed monthly. The lease lapsed on 27 February 2103. Considering the 77 years remaining we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
In 2014 we were approached by Dr Courtney Walker who, having owned a first floor apartment in Patcham in November 2012. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Similar properties in Patcham with 100 year plus lease were worth £183,600. The average ground rent payable was £65 billed quarterly. The lease ran out on 18 June 2083. Considering the 57 years remaining we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including legals.