With a long leasehold property in Peasedown St John, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years left. Anyone in Peasedown St John with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years outstanding, under the current Act the freeholder can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Peasedown St John can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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 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.
Hugo was the the leasehold owner of a studio flat in Peasedown St John being sold with a lease of fraction over sixty years remaining. Hugo on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Ms K Flores acquired a purpose-built flat in Peasedown St John in June 2001. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Peasedown St John with 100 year plus lease were worth £246,800. The average ground rent payable was £60 invoiced monthly. The lease terminated on 6 September 2075. Having 50 years left we approximated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of fees.
Dr Sebastian Robinson bought a studio apartment in Peasedown St John in September 2001. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in Peasedown St John with a long lease were worth £203,200. The mid-range amount of ground rent was £65 billed per annum. The lease finished in 2086. Having 61 years as a residual term we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including fees.