For anyone whose Pembroke Dock home is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Pembroke Dock with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Pembroke Dock leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Leo owned a studio flat in Pembroke Dock on the market with a lease of a little over sixty years outstanding. Leo informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Leo to invoke his statutory right. Leo obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
In 2011 we were contacted by Mr U Díaz who, having purchased a purpose-built apartment in Pembroke Dock in September 2012. The question was if we could estimate the price would be to prolong the lease by 90 years. Similar properties in Pembroke Dock with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed yearly. The lease expired on 3 February 2095. Given that there were 70 years left we approximated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 plus costs.
Dr Jessica Bertrand was assigned a lease of a garden apartment in Pembroke Dock in May 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative homes in Pembroke Dock with an extended lease were valued around £246,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed in 2075. Having 50 years remaining we estimated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 plus fees.