When it comes to long leasehold property in Piccadilly, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years left. Anyone in Piccadilly with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. Once the lease term has below 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Piccadilly with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Piccadilly,the lease extension lawyers that we work with will always be happy 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.
Jonathan owned a conversion flat in Piccadilly being marketed with a lease of just over sixty years remaining. Jonathan informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking 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. Ordinarily, ground rent would not be due on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2011 we were phoned by Mr I Lambert who, having took over the lease of a basement flat in Piccadilly in October 1998. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparable homes in Piccadilly with a long lease were worth £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease terminated on 6 November 2101. Having 75 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
An example of a Lease Extension case for a Piccadilly flat 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 remaining number of years on the lease was 21 years.