The closer a domestic lease in Peterborough nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Peterborough will meet the qualifying criteria; that being said a conveyancer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Peterborough,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Peterborough valuers.
Harrison was the the leasehold proprietor of a conversion apartment in Peterborough being sold with a lease of a few days over fifty eight years remaining. Harrison informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert legal guidance and secured an acceptable resolution informally and sell the flat.
Mr Teddy Hall acquired a basement apartment in Peterborough in June 1998. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical premises in Peterborough with a long lease were valued about £166,400. The average amount of ground rent was £60 billed quarterly. The lease came to a finish in 2080. Considering the 54 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of expenses.
Last year we were contacted by Mr H Scott , who purchased a studio apartment in Peterborough in June 1995. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Peterborough with an extended lease were worth £227,800. The average amount of ground rent was £45 billed yearly. The lease lapsed on 25 January 2091. Considering the 65 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.