Peterborough leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be payable. Flat owners in Peterborough will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Peterborough with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Peterborough,the lease extension experts that we work with will always be happy 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.
Half a year ago Oliver, started to get near to the eighty-year mark with the lease on his ground floor apartment in Peterborough. Having bought his home 19 years ago, the lease term was of no relevance. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Oliver arranged for a lease extension at the eleventh hour in August. Oliver and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If the lease had slid to less than eighty years, the sum would have increased by a minimum £1,025.
In 2013 we were phoned by Dr R Gómez who, having moved into a newly refurbished apartment in Peterborough in November 2007. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative properties in Peterborough with a long lease were in the region of £280,000. The average amount of ground rent was £55 billed monthly. The lease elapsed on 12 July 2104. Taking into account 78 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Mrs C Lee acquired a one bedroom apartment in Peterborough in July 2009. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparable residencies in Peterborough with 100 year plus lease were worth £191,000. The mid-range amount of ground rent was £65 billed monthly. The lease terminated on 6 May 2084. Taking into account 58 years outstanding we approximated the premium to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of expenses.