Pinner Green residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Pinner Green with in excess of 100 years outstanding 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The lawyers that we work with undertake 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 lawyer we work with provide it.
Subsequent to protracted discussions with the freeholder of her two bedroom flat in Pinner Green, Isabel started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The legal work was concluded in September 2008. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were called by Mr and Mrs. A Martínez , who moved into a one bedroom flat in Pinner Green in October 1997. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical homes in Pinner Green with an extended lease were worth £233,200. The mid-range ground rent payable was £60 invoiced per annum. The lease concluded in 2087. Having 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of fees.
An example of a lease Extension matter before the tribunal 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 related to 1 flat. The unexpired term was 58.19 years.