With a domestic leasehold property in Petersham, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider 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 especially when there are fewer than eighty years remaining. Leasehold owners in Petersham with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. When the lease term has under eighty years remaining, under the current statute the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Petersham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Finn was the the leasehold owner of a studio apartment in Petersham being marketed with a lease of a few days over 61 years unexpired. Finn on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last year we were called by Dr P Edwards , who moved into a one bedroom flat in Petersham in June 2004. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative residencies in Petersham with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ended in 2097. Taking into account 71 years as a residual term we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
An example of a Lease Extension decision for a Petersham property is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case related to 1 flat. The unexpired residue of the current lease was 60.45 years.