The closer a domestic lease in Pudsey nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 125 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Pudsey will qualify for this right; nevertheless a conveyancing solicitor should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Pudsey with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with undertake Pudsey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Omar was the the leasehold proprietor of a 2 bedroom apartment in Pudsey on the market with a lease of just over 59 years unexpired. Omar informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Omar to invoke his statutory right. Omar procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
In 2010 we were contacted by Mr D Scott who, having acquired a basement flat in Pudsey in November 1999. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Pudsey with a long lease were in the region of £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease ended on 23 June 2076. Given that there were 50 years left we calculated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus fees.
Last Spring we were contacted by Mr and Mrs. T Lefebvre , who took over the lease of a ground floor flat in Pudsey in January 2011. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Pudsey with an extended lease were in the region of £203,200. The mid-range amount of ground rent was £65 collected quarterly. The lease expired on 12 November 2087. Given that there were 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.