Polesworth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Polesworth tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Polesworth you really ought to see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Polesworth flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Polesworth with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Polesworth,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 experience and the close ties they enjoy with Polesworth valuers.
Harvey owned a conversion flat in Polesworth on the market with a lease of a few days over fifty eight years outstanding. Harvey on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last June we were contacted by Dr Ryan Vincent , who acquired a one bedroom flat in Polesworth in August 1998. The dilemma was if we could estimate the price would be for a 90 year lease extension. Similar residencies in Polesworth with 100 year plus lease were worth £225,800. The average ground rent payable was £60 billed quarterly. The lease ended in 2086. Considering the 60 years as a residual term we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus expenses.
In 2009 we were e-mailed by Dr Harrison Murphy who, having bought a recently refurbished flat in Polesworth in September 2002. The question was if we could estimate the price would be to extend the lease by ninety years. Similar residencies in Polesworth with a long lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated in 2106. Given that there were 80 years remaining we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.