Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Peterborough. Clearly, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Peterborough have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful attention before putting off your Peterborough lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold premises in Peterborough with in excess of 100 years unexpired 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Peterborough can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Peterborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Oliver, came dangerously near to the eighty-year threshold with the lease on his two bedroom flat in Peterborough. Having purchased his property twenty years previously, the unexpired term was of no importance. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Oliver extended the lease at the eleventh hour in June. Oliver and the freeholder ultimately settled on a premium of £5,000 . If he not met the deadline, the figure would have become more costly by at least £925.
In 2013 we were phoned by Dr M Morgan who, having was assigned a lease of a first floor apartment in Peterborough in July 2007. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Similar residencies in Peterborough with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected quarterly. The lease elapsed on 27 October 2094. Given that there were 69 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
Last Autumn we were contacted by Mr and Mrs. D López , who took over the lease of a studio apartment in Peterborough in July 2012. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparative premises in Peterborough with a long lease were in the region of £290,000. The average ground rent payable was £60 collected annually. The lease concluded on 3 October 2105. Given that there were 80 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.