The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Pyle may extend the lease for a further ninety years in accordance with legislation. Do give careful consideration before delaying your Pyle lease extension. Putting off the costs now simply escalates the price you will ultimately be required to pay for a lease extension.
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with handle Pyle 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 conveyancer we work with provide it.
In recent months Austin, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Pyle. Having purchased his flat two decades ago, the lease term was of minimal bearing. by good luck, he realised he would imminently be paying an escalated premium for a lease extension. Austin arranged for a lease extension just under the wire in June. Austin and the freeholder in the end settled on sum of £5,000 . If he not met the deadline, the price would have gone up by at least £925.
Mr F Alexander completed a purpose-built apartment in Pyle in August 2002. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Pyle with a long lease were in the region of £265,000. The average ground rent payable was £55 billed annually. The lease finished on 11 October 2099. Given that there were 74 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Ms Samantha Garcia took over the lease of a one bedroom apartment in Pyle in September 2001. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical residencies in Pyle with a long lease were valued around £166,400. The mid-range amount of ground rent was £60 billed per annum. The lease elapsed in 2079. Taking into account 54 years outstanding we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.