The only way is down when it comes to Pudsey lease terms. Pudsey properties that have a residual term lower than 80 years will de-escalate in market price at a rapid rate, and the cost to extend your lease will go up.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Pudsey 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 procuring Pudsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the freeholder of her one bedroom apartment in Pudsey, Catherine initiated the lease extension process just as her lease was coming close to the critical 80-year deadline. The lease extension was finalised in June 2008. The landlord’s charges were kept to an absolute minimum.
Dr T Rogers completed a one bedroom apartment in Pudsey in March 2010. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Pudsey with a long lease were in the region of £210,600. The average ground rent payable was £45 collected monthly. The lease lapsed in 2087. Having 62 years outstanding we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus legals.
Last Spring we were phoned by Mr and Mrs. W Moreau , who owned a one bedroom apartment in Pudsey in June 2009. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Pudsey with an extended lease were worth £260,000. The average ground rent payable was £50 collected annually. The lease end date was in 2098. Taking into account 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.