Peterborough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Peterborough residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Peterborough you must investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Peterborough leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, 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. |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Peterborough can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 a wealth of experience procuring Peterborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alex was the the leasehold proprietor of a studio flat in Peterborough on the market with a lease of a few days over fifty eight years left. Alex informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Alex to invoke his statutory right. Alex procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2013 we were e-mailed by Dr O Simon who, having owned a newly refurbished apartment in Peterborough in February 2007. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in Peterborough with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish in 2075. Having 50 years unexpired we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of expenses.
Last Christmas we were called by Mr and Mrs. W Cox , who purchased a recently refurbished apartment in Peterborough in November 2010. We are asked if we could estimate the price would be to prolong the lease by ninety years. Similar homes in Peterborough with an extended lease were in the region of £208,200. The average amount of ground rent was £65 collected every twelve months. The lease concluded in 2086. Given that there were 61 years left we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus fees.