As the length of the unexpired term of a Pinner Green domestic lease diminished so does its value and therefore the value of your property. Where the lease has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Pinner Green will qualify for this right; nevertheless a lawyer should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Pinner Green with in excess of 100 years remaining 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
| 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. |
Using our service gives you enhanced control over the value of your Pinner Green leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Hunter, came precariously near to the eighty-year threshold with the lease on his first floor flat in Pinner Green. In buying his home twenty years previously, the unexpired term was of no significance. Thankfully, he realised he needed to take steps soon on a lease extension. Hunter extended the lease just in the nick of time last June. Hunter and the freeholder in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the sum would have increased by at least £1,075.
Last Spring we were e-mailed by Dr Jonathan Patel , who purchased a recently refurbished flat in Pinner Green in May 2003. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Pinner Green with a long lease were worth £270,000. The average amount of ground rent was £65 billed every twelve months. The lease lapsed on 1 July 2093. Taking into account 68 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
An example of a lease Extension case for a Pinner Green flat 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 residue of the current lease was 58.19 years.