Piccadilly 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 becomes more expensive. The majority of owners of residential leasehold property in Piccadilly enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Piccadilly you really ought to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Piccadilly flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Piccadilly with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Piccadilly,the lease extension experts 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 Piccadilly valuers.
In the wake of 9 months of unsuccessful discussions with the landlord of her garden flat in Piccadilly, Victoria commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The transaction was concluded in July 2010. The landlord’s costs were kept to an absolute minimum.
In 2012 we were phoned by Dr R Anderson who, having acquired a purpose-built apartment in Piccadilly in July 2012. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical properties in Piccadilly with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease ended in 2100. Given that there were 74 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired term was 21 years.