The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Peasedown St John have the legal entitlement to extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your Peasedown St John lease extension. Putting off that expense today simply increases the amount you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Peasedown St John,the lease extension lawyers 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 Peasedown St John valuers.
Sam was the the leasehold owner of a high value apartment in Peasedown St John being sold with a lease of a little over fifty eight years remaining. Sam on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sam to invoke his statutory right. Sam procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
Last Summer we were phoned by Dr T Morel , who bought a first floor flat in Peasedown St John in May 2008. The question was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Similar properties in Peasedown St John with an extended lease were worth £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease elapsed on 11 May 2094. Given that there were 69 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Last Autumn we were contacted by Dr Aiden Johnson , who moved into a purpose-built flat in Peasedown St John in May 2003. The question was if we could approximate the premium would be to extend the lease by an additional years. Comparable flats in Peasedown St John with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 invoiced monthly. The lease elapsed on 9 February 2105. Considering the 80 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.