There is no doubt about it a leasehold flat or house in Peasedown St John is a wasting asset as a result of the diminishing lease term. If the residual term has, over 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Peasedown St John will meet the qualifying criteria; nevertheless a conveyancer should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Peasedown St John can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Peasedown St John lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the landlord of her basement apartment in Peasedown St John, Paige commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The transaction completed in February 2010. The landlord’s charges were negotiated to approximately 500 pounds.
Mr G Wright purchased a first floor apartment in Peasedown St John in May 2004. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Peasedown St John with an extended lease were in the region of £183,600. The average ground rent payable was £65 collected annually. The lease ended in 2082. Given that there were 57 years left we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
Last Autumn we were contacted by Dr D Davies , who owned a ground floor flat in Peasedown St John in June 2005. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar residencies in Peasedown St John with an extended lease were valued around £245,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded in 2093. Having 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.