Pewsey leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Pewsey enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pewsey you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Pewsey flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Pewsey leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold proprietor of a high value flat in Pewsey being sold with a lease of fraction over 59 years unexpired. Caleb informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Spring we were called by Mr Jayden Hernández , who owned a recently refurbished flat in Pewsey in July 2001. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar properties in Pewsey with an extended lease were in the region of £227,800. The mid-range amount of ground rent was £45 collected yearly. The lease terminated in 2090. Having 65 years remaining we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
In 2012 we were contacted by Mr and Mrs. Y Howard who, having was assigned a lease of a one bedroom apartment in Pewsey in February 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Pewsey with a long lease were worth £270,000. The average amount of ground rent was £55 billed every twelve months. The lease concluded in 2101. Having 76 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.