When it comes to residential leasehold premises in Petersfield, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be 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 as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Leasehold owners in Petersfield with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has fewer than 80 years outstanding, under the relevant statute the landlord can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Petersfield leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Nathan, started to get close to the 80-year threshold with the lease on his leasehold flat in Petersfield. In buying his property two decades ago, the lease term was of little importance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Nathan was able to extend his lease at the eleventh hour in April. Nathan and the freeholder via the managing agents eventually settled on an amount of £6,000 . If he failed to meet the deadline, the amount would have increased by a minimum £925.
Ms Olivia Howard was assigned a lease of a studio apartment in Petersfield in April 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Petersfield with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease lapsed in 2104. Given that there were 79 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.
Last Summer we were phoned by Mr and Mrs. H Alexander , who acquired a one bedroom flat in Petersfield in February 2004. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical residencies in Petersfield with a long lease were valued around £193,400. The average ground rent payable was £65 billed quarterly. The lease terminated on 26 September 2084. Taking into account 59 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.