Pulborough leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Pulborough will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Pulborough with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Pulborough 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.
Matthew owned a studio flat in Pulborough being sold with a lease of just over sixty years remaining. Matthew informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Mr Toby Turner owned a one bedroom apartment in Pulborough in November 2007. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar homes in Pulborough with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 billed monthly. The lease termination date was in 2102. Given that there were 77 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Mr F Carter moved into a one bedroom apartment in Pulborough in September 2011. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparative properties in Pulborough with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed annually. The lease came to a finish in 2082. Considering the 57 years remaining we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus expenses.