Pinner leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Pinner will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Pinner with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Pinner,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pinner valuers.
16 months ago Ben, started to get near to the 80-year mark with the lease on his two bedroom apartment in Pinner. Having bought his home twenty years previously, the lease term was of minimal significance. Thankfully, he became aware that he needed to take action soon on a lease extension. Ben extended the lease at the eleventh hour in July. Ben and the landlord who owned the flat above subsequently settled on sum of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £1,125.
Mr W Norbert owned a first floor flat in Pinner in April 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Pinner with 100 year plus lease were worth £186,000. The average amount of ground rent was £65 collected quarterly. The lease terminated in 2083. Having 58 years left we estimated the premium to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Pinner flat is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case related to 3 flats. The unexpired term was 71 years.