Peasedown St John leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Peasedown St John enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Peasedown St John you would be well advised to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Peasedown St John flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold premises in Peasedown St John with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Peasedown St John can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 in-depth market knowledge dealing with 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.
Dylan owned a high value apartment in Peasedown St John being marketed with a lease of just over sixty years left. Dylan informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. A Moore owned a one bedroom apartment in Peasedown St John in October 2010. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Peasedown St John with 100 year plus lease were valued about £210,600. The average amount of ground rent was £45 collected quarterly. The lease came to a finish on 12 January 2088. Taking into account 62 years outstanding we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including fees.
In 2011 we were contacted by Mr and Mrs. U Wood who, having took over the lease of a ground floor flat in Peasedown St John in November 1996. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Peasedown St John with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ended in 2099. Taking into account 73 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.