When it comes to residential leasehold property in Petts Wood, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease 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 less than eighty years left. Anyone in Petts Wood with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has less than eighty years outstanding, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Petts Wood with over 100 years left 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 property. 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 | 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Petts Wood,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Petts Wood valuers.
Half a year ago Jackson, came very close to the eighty-year threshold with the lease on his ground floor flat in Petts Wood. In buying his property two decades ago, the lease term was of little bearing. As luck would have it, he recognised he needed to take steps soon on a lease extension. Jackson extended the lease just under the wire last April. Jackson and the freeholder eventually agreed on sum of £5,500 . If he not met the deadline, the premium would have escalated by at least £1,000.
Mr R Cook took over the lease of a ground floor apartment in Petts Wood in October 2005. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Petts Wood with an extended lease were valued about £208,600. The mid-range ground rent payable was £60 billed quarterly. The lease ended in 2082. Having 57 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including expenses.
An example of a Lease Extension matter before the tribunal for a Petts Wood premises is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case related to 1 flat. The unexpired residue of the current lease was 50.57 years.