The closer a domestic lease in Peterborough gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in Peterborough will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Peterborough with over 100 years remaining 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Peterborough,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Peterborough valuers.
14 months ago Ethan, came perilously near to the 80-year mark with the lease on his purpose- built apartment in Peterborough. In buying his property 19 years ago, the unexpired term was of little bearing. Luckily, he noticed he needed to take steps soon on Extending the lease. Ethan was able to extend his lease just ahead of time in September. Ethan and the freeholder subsequently settled on sum of £5,000 . If he not met the deadline, the figure would have increased by a minimum £1,150.
Last year we were approach by Ms L Carter , who took over the lease of a one bedroom apartment in Peterborough in September 2006. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative properties in Peterborough with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £60 collected per annum. The lease finished in 2105. Given that there were 80 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.
In 2009 we were e-mailed by Dr U Campbell who, having bought a one bedroom apartment in Peterborough in August 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Identical premises in Peterborough with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease ended in 2085. Taking into account 60 years as a residual term we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus legals.