Pembroke Dock leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Pembroke Dock will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with handle Pembroke Dock 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.
Oscar was the the leasehold owner of a conversion flat in Pembroke Dock on the market with a lease of fraction over 59 years left. Oscar informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Spring we were called by Ms Eleanor Fournier , who moved into a ground floor flat in Pembroke Dock in January 2002. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Similar residencies in Pembroke Dock with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out in 2077. Considering the 51 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of legals.
Dr Dexter André completed a basement flat in Pembroke Dock in May 2010. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Pembroke Dock with a long lease were worth £210,600. The average amount of ground rent was £45 billed every twelve months. The lease concluded in 2088. Taking into account 62 years remaining we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.