Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Petersfield. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Petersfield have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful deliberation before putting off your Petersfield lease extension. Putting off that expense now only increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Petersfield with over 100 years left 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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. |
| 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 |
Lease extensions in Petersfield can be a difficult process. We recommend you obtain professional help 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 procuring Petersfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her purpose-built apartment in Petersfield, Katie commenced the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction was concluded in January 2009. The landlord’s charges were negotiated to about 450 GBP.
Last Christmas we were e-mailed by Mr and Mrs. W Khan , who owned a purpose-built apartment in Petersfield in February 1997. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical residencies in Petersfield with a long lease were worth £210,600. The mid-range ground rent payable was £45 billed monthly. The lease ran out in 2088. Having 62 years remaining we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including expenses.
Last month we were approach by Mr O Martin , who moved into a recently refurbished apartment in Petersfield in October 2012. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparative flats in Petersfield with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 collected per annum. The lease ran out in 2099. Considering the 73 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.