Pelsall leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Pelsall tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Pelsall you would be well advised to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Pelsall with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Pelsall,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pelsall valuers.
Connor owned a 2 bedroom flat in Pelsall on the market with a lease of a few days over sixty years left. Connor informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
In 2009 we were phoned by Mr and Mrs. U Bernard who, having owned a studio apartment in Pelsall in June 2011. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical homes in Pelsall with an extended lease were worth £260,200. The average ground rent payable was £65 collected per annum. The lease expired on 19 April 2091. Taking into account 66 years left we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including expenses.
In 2011 we were contacted by Mrs Mia Phillips who, having completed a one bedroom flat in Pelsall in May 1999. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in Pelsall with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 collected every twelve months. The lease concluded on 10 February 2080. Having 55 years left we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of professional charges.