Pontefract leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Pontefract will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Pontefract with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Pontefract leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Mason, came very close to the 80-year mark with the lease on his one bedroom flat in Pontefract. Having purchased his flat 18 years previously, the unexpired term was of no concern. by good luck, he recognised he would soon be paying an inflated amount for a lease extension. Mason extended the lease just in the nick of time last August. Mason and the freeholder via the management company in the end agreed on an amount of £5,000 . If the lease had fallen lower than eighty years, the premium would have gone up by a minimum £1,125.
Mrs Lydia Bennett moved into a first floor apartment in Pontefract in June 2003. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Identical residencies in Pontefract with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease finished in 2082. Considering the 56 years unexpired we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.
Dr H Patel completed a basement apartment in Pontefract in June 2007. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable flats in Pontefract with 100 year plus lease were valued around £237,600. The mid-range amount of ground rent was £45 billed quarterly. The lease ended in 2093. Considering the 67 years unexpired we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus fees.