It’s an underpublicised certainty that a Pelsall residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Pelsall property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. Most flat owners in Pelsall will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Pelsall with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 lawyers that we work with handle 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 lawyer we work with provide it.
After unsuccessful discussions with the landlord of her basement apartment in Pelsall, Isabella initiated the lease extension process as the 80 year deadline was swiftly advancing. The legal work was concluded in November 2012. The landlord’s charges were kept to an absolute minimum.
Last November we were called by Mr and Mrs. T Hill , who was assigned a lease of a one bedroom flat in Pelsall in November 2001. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical homes in Pelsall with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed monthly. The lease finished on 28 October 2079. Given that there were 54 years unexpired we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including professional charges.
Mr U Mitchell took over the lease of a first floor flat in Pelsall in January 2001. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Pelsall with a long lease were valued around £295,000. The mid-range amount of ground rent was £45 collected yearly. The lease lapsed in 2099. Having 74 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.