With a long leasehold property in Pound Hill, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than 80 years remaining. Anyone in Pound Hill with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has less than eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Pound Hill with over 100 years left 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Pound Hill,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pound Hill valuers.
After unsuccessful negotiations with the landlord of her purpose-built flat in Pound Hill, Chloe initiated the lease extension process as the 80 year threshold was fast coming. The lease extension completed in June 2010. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. S Campbell who, having moved into a basement apartment in Pound Hill in January 2009. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable premises in Pound Hill with an extended lease were worth £275,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ended in 2095. Considering the 69 years left we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
Last Autumn we were e-mailed by Mrs Lauren Watson , who bought a studio apartment in Pound Hill in September 2007. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Pound Hill with a long lease were valued about £216,000. The mid-range amount of ground rent was £60 collected per annum. The lease expiry date was in 2084. Given that there were 58 years left we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.