Piccadilly leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Piccadilly will usually qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Piccadilly with over 100 years unexpired on the lease are often referred to as ‘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 purchasing the freehold unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The lawyers that we work with handle Piccadilly 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 lawyer we work with provide it.
Toby was the the leasehold owner of a conversion apartment in Piccadilly on the market with a lease of just over 59 years unexpired. Toby informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mrs T Hill moved into a basement apartment in Piccadilly in August 2010. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical residencies in Piccadilly with a long lease were worth £260,000. The average amount of ground rent was £50 collected monthly. The lease end date was on 1 November 2099. Having 73 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Piccadilly residence is Flat 1 3 Upper Belgrave Street in December 2010. The Tribunal determined that the price payablefor the Lease extension in respect of the subject premises was £2,202,007 This case related to 1 flat. The unexpired term as at the valuation date was 21 years.