When it comes to domestic leasehold property in Pyle, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years left. Leasehold owners in Pyle with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has below eighty years remaining, under the current Act the freeholder can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Pyle with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Pyle,the lease extension solicitors 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.
In the wake of 9 months of unsuccessful correspondence with the landlord of her first floor flat in Pyle, Shannon initiated the lease extension process as the 80 year threshold was swiftly approaching. The transaction completed in November 2009. The freeholder’s charges were restricted to approximately 700 GBP.
Last March we were approach by Mr and Mrs. O Mason , who purchased a one bedroom flat in Pyle in January 2011. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar premises in Pyle with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected annually. The lease terminated in 2081. Given that there were 56 years unexpired we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus costs.
Ms Grace Mitchell moved into a garden flat in Pyle in February 2006. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Similar properties in Pyle with 100 year plus lease were worth £242,600. The average ground rent payable was £45 billed quarterly. The lease terminated in 2092. Considering the 67 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus costs.