The value of Pelsall leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than eighty years
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
| 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. |
The conveyancers that we work with procure Pelsall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Aarav owned a studio apartment in Pelsall being marketed with a lease of just over 72 years unexpired. Aarav informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Aarav to exercise his statutory right. Aarav procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2009 we were called by Mrs Abigail Martinez who, having moved into a basement apartment in Pelsall in November 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Pelsall with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed yearly. The lease concluded on 1 March 2098. Given that there were 73 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Mr and Mrs. V Garcia owned a studio flat in Pelsall in January 2003. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparative residencies in Pelsall with 100 year plus lease were worth £235,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed on 2 April 2087. Taking into account 62 years unexpired we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of legals.