Pudsey leases on domestic deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Pudsey will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Pudsey with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Pudsey can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Pudsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the freeholder of her garden apartment in Pudsey, Natasha started the lease extension process as the 80 year deadline was fast coming. The lease extension was finalised in May 2013. The freeholder’s charges were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. K Robinson , who owned a one bedroom apartment in Pudsey in September 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Pudsey with 100 year plus lease were valued about £168,800. The mid-range amount of ground rent was £60 billed per annum. The lease terminated in 2080. Considering the 55 years unexpired we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
In 2011 we were phoned by Dr S Campbell who, having completed a one bedroom apartment in Pudsey in August 2005. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical properties in Pudsey with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected every twelve months. The lease ended on 23 March 2091. Considering the 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.