Petersfield leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Petersfield residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Petersfield you should investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Petersfield flat owner with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
Leasehold properties in Petersfield with in excess of 100 years remaining 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Godiva Mortgages | |
| TSB | |
| Royal Bank of Scotland |
Lease extensions in Petersfield can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
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 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.
Two years ago Lucas, started to get near to the eighty-year mark with the lease on his leasehold flat in Petersfield. In buying his flat two decades ago, the lease term was of no relevance. by good luck, he realised he needed to take steps soon on a lease extension. Lucas extended the lease at the eleventh hour last September. Lucas and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £875.
Last February we were contacted by Mr and Mrs. F Moreau , who moved into a ground floor apartment in Petersfield in August 2009. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparative premises in Petersfield with a long lease were in the region of £260,000. The average amount of ground rent was £50 collected per annum. The lease came to a finish in 2098. Given that there were 72 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Dr I Morris took over the lease of a one bedroom apartment in Petersfield in October 1997. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Similar properties in Petersfield with an extended lease were valued around £256,600. The average amount of ground rent was £60 billed per annum. The lease expired on 5 October 2078. Considering the 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 not including professional charges.