Pattingham leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Pattingham will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Pattingham with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Pattingham,the lease extension experts 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.
Subsequent to unsuccessful discussions with the freeholder of her basement flat in Pattingham, Ella started the lease extension process as the 80 year mark was quickly approaching. The legal work was concluded in September 2013. The landlord’s costs were restricted to under six hundred pounds.
Last Christmas we were e-mailed by Ms W Campbell , who moved into a garden flat in Pattingham in August 2005. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative residencies in Pattingham with an extended lease were in the region of £208,600. The average amount of ground rent was £60 billed every twelve months. The lease ended in 2082. Given that there were 57 years left we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including expenses.
Mr and Mrs. B Khan owned a studio apartment in Pattingham in November 1998. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Pattingham with a long lease were valued about £200,000. The average amount of ground rent was £50 billed every twelve months. The lease expired in 2102. Taking into account 77 years left we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.