Pontefract residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
Leasehold premises in Pontefract with more than 100 years outstanding 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Lease extensions in Pontefract can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Pontefract lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her studio apartment in Pontefract, Jessica commenced the lease extension process just as her lease was coming close to the critical eighty-year mark. The legal work was concluded in June 2008. The landlord’s costs were negotiated to approximately 450 GBP.
Ms H Lefebvre bought a one bedroom apartment in Pontefract in January 1997. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Identical homes in Pontefract with an extended lease were worth £245,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish on 5 May 2094. Considering the 68 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Last Christmas we were phoned by Dr Harry Bennett , who bought a one bedroom apartment in Pontefract in August 2005. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative premises in Pontefract with a long lease were in the region of £285,000. The average amount of ground rent was £55 billed per annum. The lease expired on 6 July 2105. Given that there were 79 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.