As the length of the unexpired term of a Pyle domestic lease decreases so does its value and therefore the value of your property. If the lease has, beyond 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Pyle will qualify for this right; however a lawyer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake 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.
Jacob owned a high value flat in Pyle on the market with a lease of fraction over 59 years left. Jacob on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jacob to exercise his statutory right. Jacob procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2009 we were called by Dr I Cox who, having acquired a one bedroom flat in Pyle in February 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Pyle with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease expired in 2096. Taking into account 70 years outstanding we estimated the premium to the landlord for the lease extension to be between £10,500 and £12,000 not including fees.
Mr N Cook purchased a garden apartment in Pyle in February 1996. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical premises in Pyle with an extended lease were valued about £246,800. The average ground rent payable was £60 collected yearly. The lease ended on 9 November 2076. Given that there were 50 years remaining we estimated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus legals.