Unfortunately that a Peterborough residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Peterborough property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. Most leasehold owners in Peterborough will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
Using our service will provide you increased control over the value of your Peterborough leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Stanley, came precariously close to the 80-year threshold with the lease on his first floor flat in Peterborough. Having purchased his property two decades ago, the unexpired term was of minimal bearing. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Stanley extended the lease just under the wire in May. Stanley and the landlord eventually agreed on the final figure of £5,000 . If the lease had fallen below 80 years, the sum would have gone up by a minimum £1,025.
Mr U Garcia moved into a recently refurbished apartment in Peterborough in August 2004. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar flats in Peterborough with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed in 2080. Taking into account 59 years remaining we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of legals.
Mr and Mrs. S Díaz took over the lease of a basement apartment in Peterborough in June 2011. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable premises in Peterborough with a long lease were valued around £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded on 18 April 2091. Considering the 70 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 exclusive of costs.