Pattingham leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Pattingham will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are also strict timetables and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective 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.
Last October Tommy, came critically close to the 80-year mark with the lease on his studio flat in Pattingham. Having purchased his home 18 years previously, the lease term was of minimal interest. Fortunately, he became aware that he would soon be paying an escalated premium for Extending the lease. Tommy was able to extend his lease just ahead of time last July. Tommy and the freeholder eventually settled on the final figure of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £875.
In 2009 we were approached by Mr O Wright who, having acquired a studio apartment in Pattingham in June 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Pattingham with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2081. Considering the 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.
Last year we were phoned by Mr and Mrs. D Turner , who purchased a first floor flat in Pattingham in November 2006. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar properties in Pattingham with an extended lease were in the region of £300,000. The average ground rent payable was £50 collected monthly. The lease concluded in 2101. Having 75 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.