The value of Pontefract leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than eighty years
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
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 experience and the close ties they enjoy with Pontefract valuers.
Owen owned a high value apartment in Pontefract on the market with a lease of just over 59 years unexpired. Owen informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Spring we were e-mailed by Mr and Mrs. L Roberts , who took over the lease of a newly refurbished apartment in Pontefract in May 2012. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative properties in Pontefract with an extended lease were worth £203,200. The average ground rent payable was £65 invoiced quarterly. The lease finished on 26 November 2086. Having 61 years outstanding we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus costs.
In 2011 we were contacted by Dr A Green who, having owned a purpose-built apartment in Pontefract in August 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical properties in Pontefract with a long lease were valued about £260,000. The average ground rent payable was £50 billed monthly. The lease lapsed on 19 June 2097. Taking into account 72 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.