Pershore leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Pershore will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service will provide you increased control over the value of your Pershore leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Tommy was the the leasehold owner of a studio flat in Pershore on the market with a lease of fraction over 72 years left. Tommy informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last Spring we were e-mailed by Mr and Mrs. Y Collins , who bought a purpose-built apartment in Pershore in November 2002. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Pershore with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease came to a finish in 2086. Considering the 60 years unexpired we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of fees.
Last Christmas we were contacted by Mr I Cooper , who took over the lease of a one bedroom apartment in Pershore in May 1996. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative premises in Pershore with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 invoiced yearly. The lease ran out on 18 August 2097. Considering the 71 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.