Pattingham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most 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 should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Pattingham leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 George, came dangerously near to the 80-year mark with the lease on his studio flat in Pattingham. In buying his property two decades ago, the length of the lease was of minimal concern. As luck would have it, he realised he would imminently be paying an inflated amount for Extending the lease. George extended the lease just ahead of time in March. George and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £950.
In 2010 we were phoned by Mr W Ramírez who, having acquired a garden flat in Pattingham in February 2011. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative homes in Pattingham with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease elapsed in 2086. Considering the 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.
Ms Lauren Brooks moved into a purpose-built flat in Pattingham in June 2000. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative homes in Pattingham with 100 year plus lease were worth £210,000. The average ground rent payable was £50 invoiced per annum. The lease finished in 2106. Considering the 80 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.