Petersfield leases on residential deteriorating in value. Where your lease has about ninety years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Petersfield will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Petersfield can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Petersfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Thomas, came precariously close to the eighty-year threshold with the lease on his studio apartment in Petersfield. Having purchased his home two decades ago, the unexpired term was of minimal interest. Luckily, he noticed he needed to take steps soon on Extending the lease. Thomas arranged for a lease extension just ahead of time last March. Thomas and the landlord ultimately agreed on an amount of £6,000 . If he not met the deadline, the premium would have become more costly by a minimum £1,000.
In 2009 we were phoned by Dr E James who, having was assigned a lease of a purpose-built flat in Petersfield in August 2008. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparative flats in Petersfield with 100 year plus lease were valued around £250,000. The mid-range ground rent payable was £50 collected quarterly. The lease expired on 28 June 2095. Having 69 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Mr T Reed owned a basement flat in Petersfield in May 1999. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative homes in Petersfield with an extended lease were in the region of £285,000. The average amount of ground rent was £55 collected per annum. The lease finished in 2106. Taking into account 80 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.