The market value of a leasehold property in Pontefract is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that all matters can be finalised well before the 80 year threshold. Statute entitles Pontefract qualifying lessees to an additional term of ninety years over and above the remaining term, at a notional rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Pontefract with in excess of one hundred years remaining 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Pontefract,the lease extension lawyers 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 Pontefract valuers.
In 2014 Jasper, started to get close to the 80-year threshold with the lease on his one bedroom flat in Pontefract. In buying his flat two decades ago, the lease term was of minimal concern. Thankfully, it dawned on him that he would soon be paying an inflated amount for a lease extension. Jasper arranged for a lease extension just ahead of time in May. Jasper and the freeholder via the management company subsequently settled on sum of £5,000 . If he not met the deadline, the price would have escalated by a minimum £975.
In 2014 we were e-mailed by Mr and Mrs. A Lee who, having completed a first floor apartment in Pontefract in September 2000. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical homes in Pontefract with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed on 23 October 2079. Having 54 years outstanding we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.
Dr Grace Mitchell owned a ground floor flat in Pontefract in July 1996. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Pontefract with an extended lease were valued about £227,800. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish on 5 September 2090. Considering the 65 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.