Pattingham leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher amount will be payable. Flat owners in Pattingham will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Pattingham with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Pattingham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Summer Jason, came dangerously close to the eighty-year threshold with the lease on his basement apartment in Pattingham. Having purchased his property two decades ago, the unexpired term was of little concern. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Jason arranged for a lease extension at the eleventh hour in June. Jason and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £1,000.
In 2011 we were phoned by Dr Imogen Ricardo who, having moved into a garden flat in Pattingham in July 2010. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparable properties in Pattingham with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 collected yearly. The lease elapsed in 2101. Having 76 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
In 2010 we were approached by Mrs Bethany Nguyen who, having purchased a one bedroom apartment in Pattingham in June 2000. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Pattingham with a long lease were in the region of £257,800. The mid-range amount of ground rent was £65 billed monthly. The lease ended in 2090. Taking into account 65 years unexpired we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus fees.