The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Pewsey have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Pewsey lease extension. Postponing that expense now simply escalates the price you will eventually be required to pay for a lease extension.
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancers that we work with procure Pewsey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Charlie owned a studio flat in Pewsey on the market with a lease of fraction over 61 years left. Charlie informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert advice and secured an acceptable deal informally and sell the flat.
Dr O Smith completed a basement flat in Pewsey in April 1997. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparable flats in Pewsey with a long lease were worth £264,000. The average amount of ground rent was £60 collected annually. The lease ended in 2078. Taking into account 53 years remaining we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of professional charges.
In 2013 we were e-mailed by Ms Tia Howard who, having was assigned a lease of a purpose-built flat in Pewsey in January 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in Pewsey with an extended lease were valued about £218,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease finished on 16 March 2088. Taking into account 63 years outstanding we approximated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus expenses.