Pewsey leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Pewsey will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Pewsey leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her basement flat in Pewsey, Imogen started the lease extension process as the eighty year deadline was swiftly nearing. The legal work was finalised in January 2007. The freeholder’s costs were negotiated to approximately 650 GBP.
Last month we were contacted by Mr and Mrs. T Ward , who purchased a newly refurbished apartment in Pewsey in November 2000. We are asked if we could approximate the price would be for a ninety year lease extension. Identical flats in Pewsey with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 billed monthly. The lease ran out on 21 June 2102. Taking into account 76 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
In 2013 we were phoned by Mr and Mrs. L Rivera who, having completed a newly refurbished apartment in Pewsey in November 2000. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable homes in Pewsey with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed in 2082. Having 56 years remaining we calculated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of legals.