Pinnerwood Park leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher premium will be due. Flat owners in Pinnerwood Park will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and formalities to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Pinnerwood Park,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pinnerwood Park valuers.
Following unsuccessful negotiations with the freeholder of her one bedroom flat in Pinnerwood Park, Freya started the lease extension process just as her lease was coming close to the crucial eighty-year mark. The transaction completed in April 2008. The landlord’s charges were kept to an absolute minimum.
Last year we were e-mailed by Dr Charlie Morris , who purchased a first floor apartment in Pinnerwood Park in January 1997. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparable residencies in Pinnerwood Park with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 collected per annum. The lease finished on 1 January 2080. Considering the 54 years unexpired we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including fees.
Dr O Rose completed a basement flat in Pinnerwood Park in July 2005. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative flats in Pinnerwood Park with 100 year plus lease were worth £227,800. The average ground rent payable was £45 billed per annum. The lease concluded in 2091. Taking into account 65 years left we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.