Chances are that where you own a flat in Pyle you actually own a long leasehold interest over your property
Leasehold premises in Pyle with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Pyle leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Joseph owned a high value flat in Pyle on the market with a lease of fraction over 61 years left. Joseph on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Last Autumn we were e-mailed by Mr and Mrs. P Harris , who owned a garden apartment in Pyle in May 1999. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical properties in Pyle with 100 year plus lease were in the region of £256,600. The mid-range ground rent payable was £60 billed quarterly. The lease expired in 2078. Having 52 years unexpired we calculated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 plus costs.
Dr Alex Gray was assigned a lease of a garden flat in Pyle in February 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Pyle with 100 year plus lease were valued about £218,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease came to a finish on 1 January 2089. Given that there were 63 years left we estimated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of expenses.