When it comes to residential leasehold property in Pontefract, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Pontefract with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has under eighty years remaining, under the relevant legislation the landlord can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Pontefract leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Nathan, came precariously close to the 80-year mark with the lease on his two bedroom apartment in Pontefract. In buying his property two decades ago, the length of the lease was of no interest. by good luck, he recognised he needed to take steps soon on a lease extension. Nathan arranged for a lease extension just under the wire last September. Nathan and the landlord who owned the flat above in the end agreed on sum of £5,500 . If the lease had slid to less than 80 years, the price would have increased by a minimum £975.
Last year we were phoned by Ms Sarah Bonnet , who completed a basement flat in Pontefract in August 2004. 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. Comparative flats in Pontefract with an extended lease were worth £265,000. The average amount of ground rent was £50 billed annually. The lease ended in 2098. Considering the 73 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Last Spring we were approach by Dr Rhiannon Hall , who owned a recently refurbished apartment in Pontefract in March 1999. The question was if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Pontefract with a long lease were in the region of £264,000. The average ground rent payable was £60 collected annually. The lease ran out in 2078. Having 53 years unexpired we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including expenses.