When it comes to long leasehold property in Pinner Green, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years remaining. Leasehold owners in Pinner Green with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has fewer than 80 years remaining, under the current Act the landlord is entitled to calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Pinner Green with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Last October Tyler, started to get close to the 80-year threshold with the lease on his purpose- built flat in Pinner Green. Having bought his property twenty years ago, the unexpired term was of no bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Tyler was able to extend his lease just under the wire in July. Tyler and the freeholder via the management company eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,000.
Last Winter we were approach by Mr and Mrs. H Rogers , who was assigned a lease of a one bedroom flat in Pinner Green in August 2001. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparable residencies in Pinner Green with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ran out in 2080. Having 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 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 lease term was 58.19 years.