Pound Hill leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Pound Hill will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Pound Hill with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Lease extensions in Pound Hill can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
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 dealing with Pound Hill 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 discussions with the freeholder of her ground floor apartment in Pound Hill, Sarah commenced the lease extension process just as the lease was approaching the critical eighty-year deadline. The legal work completed in March 2005. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were phoned by Dr N Dupont , who acquired a one bedroom flat in Pound Hill in October 2003. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Pound Hill with an extended lease were worth £223,400. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish on 15 September 2084. Given that there were 59 years left we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including legals.
Mr and Mrs. N Brown purchased a first floor apartment in Pound Hill in April 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Pound Hill with a long lease were valued about £210,000. The mid-range ground rent payable was £50 collected yearly. The lease elapsed in 2104. Considering the 79 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.