There is no doubt about it a leasehold flat or house in Petersham is a wasting asset as a result of the shortening lease. If the lease has, more than 125 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Petersham will meet the qualifying criteria; that being said a lawyer should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service will provide you better control over the value of your Petersham leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her purpose-built flat in Petersham, Georgia initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The transaction was finalised in January 2015. The landlord’s charges were kept to an absolute minimum.
In 2009 we were contacted by Dr Oscar Bernard who, having purchased a basement flat in Petersham in July 2011. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Petersham with a long lease were in the region of £181,600. The average amount of ground rent was £55 billed monthly. The lease concluded on 1 April 2078. Considering the 52 years remaining we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus professional charges.
An example of a Lease Extension decision for a Petersham residence 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 60.45 years.