Petworth leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher amount will be due. Flat owners in Petworth will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Petworth with more than 100 years left on the lease are sometimes referred to as ‘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 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Petworth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Petworth valuers.
Trailing lengthy discussions with the freeholder of her purpose-built apartment in Petworth, Bethany commenced the lease extension process as the 80 year threshold was swiftly coming. The lease extension was concluded in August 2008. The freeholder’s fees were restricted to about 500 GBP.
In 2011 we were approached by Mr F Gunderson who, having was assigned a lease of a garden apartment in Petworth in July 1997. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Similar premises in Petworth with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed in 2084. Having 58 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
Last Winter we were e-mailed by Dr N Hill , who purchased a purpose-built apartment in Petworth in July 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparative premises in Petworth with an extended lease were worth £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease end date was on 19 February 2104. Having 78 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.