The market value of Pinnerwood Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is below than eighty years
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Pinnerwood Park 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.
In the wake of 6 months of protracted discussions with the freeholder of her garden flat in Pinnerwood Park, Natasha started the lease extension process as the eighty year deadline was swiftly nearing. The transaction completed in October 2014. The freeholder’s fees were kept to an absolute minimum.
Last January we were e-mailed by Mr and Mrs. I Moore , who purchased a purpose-built flat in Pinnerwood Park in November 2000. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Pinnerwood Park with an extended lease were in the region of £275,000. The average amount of ground rent was £55 collected per annum. The lease terminated on 21 February 2101. Taking into account 76 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
In 2014 we were e-mailed by Mrs R Jackson who, having moved into a ground floor flat in Pinnerwood Park in June 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Pinnerwood Park with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease ended in 2081. Taking into account 56 years unexpired we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including costs.