The re-sale value of a leasehold property in Petersham is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that formalities can be addressed prior to the 80 year mark. Leasehold Reform legislation entitles Petersham qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Petersham with over one hundred years outstanding on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Petersham can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 Petersham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Theo, started to get near to the 80-year mark with the lease on his leasehold apartment in Petersham. Having purchased his flat twenty years previously, the length of the lease was of no interest. Fortunately, it dawned on him that he would soon be paying way over the odds for a lease extension. Theo arranged for a lease extension just under the wire last March. Theo and the freeholder in the end settled on sum of £5,000 . If the lease had slipped to less than 80 years, the sum would have escalated by at least £850.
In 2012 we were called by Mr J Robinson who, having bought a basement apartment in Petersham in August 2004. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable residencies in Petersham with a long lease were worth £206,200. The average amount of ground rent was £60 collected quarterly. The lease expired on 6 June 2082. Having 56 years unexpired we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.
An example of a Lease Extension decision for a Petersham flat 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 affected 1 flat. The remaining number of years on the lease was 60.45 years.