There is no doubt about it a leasehold property in Pewsey is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. Most flat owners in Pewsey will qualify for this right; nevertheless a lawyer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Pewsey with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Pewsey,the lease extension solicitors 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 Pewsey valuers.
Mason was the the leasehold owner of a 2 bedroom apartment in Pewsey being sold with a lease of fraction over 59 years outstanding. Mason on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Mason to exercise his statutory right. Mason obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last April we were contacted by Mr and Mrs. Y Díaz , who took over the lease of a purpose-built apartment in Pewsey in April 2000. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical flats in Pewsey with a long lease were in the region of £198,400. The average amount of ground rent was £65 invoiced every twelve months. The lease concluded on 27 January 2084. Considering the 59 years left we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of costs.
Last year we were contacted by Dr G Torres , who completed a one bedroom flat in Pewsey in October 2011. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Pewsey with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 invoiced quarterly. The lease finished in 2095. Considering the 70 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.