Pickering residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold properties in Pickering with more than 100 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| Coventry Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Pickering can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Pickering lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Jayden, started to get near to the 80-year threshold with the lease on his one bedroom flat in Pickering. In buying his property twenty years ago, the length of the lease was of no significance. Fortunately, he realised he would imminently be paying an escalated premium for Extending the lease. Jayden arranged for a lease extension at the eleventh hour in July. Jayden and the freeholder ultimately agreed on a premium of £5,500 . If the lease had descended below 80 years, the amount would have gone up by a minimum £1,000.
In 2013 we were e-mailed by Mr and Mrs. T Norbert who, having purchased a first floor flat in Pickering in November 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Pickering with a long lease were in the region of £200,800. The average amount of ground rent was £65 invoiced monthly. The lease expired in 2086. Given that there were 60 years outstanding we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 plus expenses.
Last Autumn we were contacted by Ms H Brown , who owned a studio apartment in Pickering in March 2004. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Identical flats in Pickering with a long lease were in the region of £260,000. The average ground rent payable was £50 billed every twelve months. The lease finished in 2097. Given that there were 71 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.