When it comes to long leasehold premises in Peterborough, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Peterborough with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has less than eighty years left, under the relevant legislation the freeholder can calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the freeholder of her studio apartment in Peterborough, Leah commenced the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction was finalised in August 2010. The freeholder’s costs were negotiated to approximately 650 GBP.
Last Christmas we were contacted by Dr I Ward , who owned a one bedroom flat in Peterborough in March 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Peterborough with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 billed monthly. The lease lapsed on 3 February 2082. Having 56 years left we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 not including expenses.
Dr Oliver Davis purchased a one bedroom flat in Peterborough in November 2008. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Peterborough with 100 year plus lease were worth £242,600. The average amount of ground rent was £45 invoiced yearly. The lease concluded on 26 March 2093. Considering the 67 years outstanding we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus professional charges.