There is no doubt about it a leasehold flat or house in Pinnerwood Park is a wasting asset as a result of the shortening lease. Where the residual term has, more than one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. Most flat owners in Pinnerwood Park will meet the qualifying criteria; nevertheless a lawyer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over one hundred 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 premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Pinnerwood Park,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pinnerwood Park valuers.
Finn was the the leasehold owner of a 2 bedroom flat in Pinnerwood Park being marketed with a lease of just over 72 years unexpired. Finn informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Ms Natasha Girard took over the lease of a ground floor flat in Pinnerwood Park in August 2007. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Identical flats in Pinnerwood Park with a long lease were worth £225,400. The mid-range ground rent payable was £45 invoiced yearly. The lease ran out in 2089. Considering the 64 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of expenses.
Last Spring we were called by Ms Eleanor Ward , who bought a basement apartment in Pinnerwood Park in April 2011. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar flats in Pinnerwood Park with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2100. Considering the 75 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.