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Top reasons for Pyle lease extension

Why you should commence your Pyle lease extension today:

A Pyle leasehold property depreciates with the years remaining on the lease.

Pyle leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Pyle will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain cases you may not be entitled. There are also strict timetables and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Pyle with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may not grant a mortgage with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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.
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Royal Bank of Scotland Mortgage term plus 30 years.

Get in touch with one of our Pyle lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Pyle,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pyle valuers.

Pyle Lease Extension Case Summaries:

Finn, Pyle, Bridgend

Last October Finn, started to get near to the 80-year mark with the lease on his one bedroom apartment in Pyle. In buying his home two decades ago, the unexpired term was of little importance. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Finn was able to extend his lease just under the wire last June. Finn and the landlord ultimately agreed on an amount of £6,000 . If the lease had dipped to less than 80 years, the price would have increased by a minimum £950.

Pyle case:

Last September we were phoned by Mr and Mrs. R Phillips , who completed a ground floor flat in Pyle in August 1998. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable properties in Pyle with 100 year plus lease were valued about £183,600. The average ground rent payable was £65 billed quarterly. The lease ended on 20 June 2080. Taking into account 57 years left we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.

Pyle case:

Last April we were approach by Ms S Leroy , who completed a basement flat in Pyle in August 1997. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Pyle with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished in 2091. Taking into account 68 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.