Paulton leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Paulton will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Paulton can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Paulton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley was the the leasehold proprietor of a 2 bedroom flat in Paulton on the market with a lease of a little over sixty years unexpired. Riley informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Riley to exercise his statutory right. Riley obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last month we were contacted by Mr and Mrs. W Harris , who took over the lease of a garden flat in Paulton in August 2005. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable premises in Paulton with 100 year plus lease were valued around £235,200. The average ground rent payable was £45 billed quarterly. The lease expiry date was in 2091. Given that there were 66 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
Dr Arthur Howard owned a one bedroom apartment in Paulton in May 1999. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparable properties in Paulton with a long lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease lapsed on 9 October 2102. Taking into account 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.