The market value of a leasehold property in Pewsey is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded in advance of the eighty year mark. Statute enables Pewsey qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Pewsey with over 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 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 in-depth market knowledge and the close ties they enjoy with Pewsey valuers.
Evan was the the leasehold proprietor of a studio apartment in Pewsey on the market with a lease of a little over 61 years unexpired. Evan informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Evan to invoke his statutory right. Evan obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Dr Ryan Smith was assigned a lease of a studio apartment in Pewsey in August 2007. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Pewsey with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded in 2097. Having 72 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
In 2009 we were called by Dr Alex López who, having owned a one bedroom flat in Pewsey in August 2009. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative flats in Pewsey with a long lease were worth £254,200. The average amount of ground rent was £60 invoiced per annum. The lease ended on 24 October 2076. Given that there were 51 years as a residual term we estimated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus fees.