On the balance of probabilities if you own a flat in Pelsall you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Retaining our service gives you better control over the value of your Pelsall leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harry owned a conversion apartment in Pelsall being sold with a lease of a few days over 61 years unexpired. Harry informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harry to invoke his statutory right. Harry procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Dr Sophie Phillips moved into a newly refurbished flat in Pelsall in September 2004. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative residencies in Pelsall with a long lease were valued about £233,200. The average amount of ground rent was £60 collected annually. The lease terminated on 26 October 2086. Given that there were 61 years left we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including expenses.
Last month we were e-mailed by Dr Sam Campbell , who owned a garden apartment in Pelsall in January 2005. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable residencies in Pelsall with 100 year plus lease were valued around £166,800. The mid-range ground rent payable was £50 collected annually. The lease elapsed in 2075. Having 50 years remaining we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.