Pinner Green leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Pinner Green residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Pinner Green you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Pinner Green 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 conveyancer we work with provide it.
Half a year ago Thomas, came dangerously close to the eighty-year mark with the lease on his ground floor flat in Pinner Green. In buying his flat two decades ago, the length of the lease was of little interest. by good luck, he noticed he needed to take action soon on a lease extension. Thomas extended the lease just ahead of time in April. Thomas and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had slipped lower than eighty years, the amount would have become more exhorbitant by at least £875.
In 2009 we were e-mailed by Mr E Evans who, having acquired a recently refurbished apartment in Pinner Green in August 1997. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable properties in Pinner Green with an extended lease were worth £218,400. The average amount of ground rent was £60 collected quarterly. The lease lapsed on 15 August 2085. Taking into account 59 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of costs.
An example of a lease Extension case for a Pinner Green residence is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case affected 1 flat. The unexpired residue of the current lease was 58.19 years.