Pattingham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Pattingham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Pattingham you must check if your lease has between seventy and 90 years left. There are compelling reasons why a Pattingham flat owner with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Pattingham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pattingham valuers.
Connor owned a high value apartment in Pattingham being marketed with a lease of just over 59 years remaining. Connor on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Connor to invoke his statutory right. Connor procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last June we were e-mailed by Dr D Roux , who acquired a one bedroom flat in Pattingham in November 1999. The question was if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Pattingham with 100 year plus lease were in the region of £171,800. The average amount of ground rent was £55 invoiced monthly. The lease expiry date was in 2075. Having 50 years left we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.
In 2009 we were contacted by Ms Nicole Morel who, having owned a studio flat in Pattingham in September 2012. The question was if we could estimate the price could be for a ninety year lease extension. Similar homes in Pattingham with a long lease were valued around £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease expired in 2095. Taking into account 70 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.