As the length of the unexpired term of a Petersham domestic lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in Petersham will meet the qualifying criteria; however a conveyancer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold 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 property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Petersham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Petersham valuers.
18 months ago Jude, came precariously near to the eighty-year threshold with the lease on his one bedroom apartment in Petersham. In buying his home twenty years previously, the length of the lease was of no interest. As luck would have it, he recognised he needed to take action soon on a lease extension. Jude arranged for a lease extension just in the nick of time last April. Jude and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he had missed the deadline, the price would have gone up by at least £850.
Last Christmas we were called by Mrs N Laurent , who acquired a garden flat in Petersham in May 1996. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Petersham with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease ran out on 21 May 2099. Having 74 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
An example of a Lease Extension case 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 unexpired residue of the current lease was 60.45 years.