Pyle leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Pyle enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pyle you really ought to see if your lease has between seventy and 90 years left. There are good reasons why a Pyle leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold properties in Pyle with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 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 lawyer we work with provide it.
Last Spring Ethan, came dangerously close to the 80-year threshold with the lease on his two bedroom apartment in Pyle. In buying his home two decades ago, the lease term was of minimal significance. As luck would have it, he noticed he would soon be paying way over the odds for a lease extension. Ethan was able to extend his lease just ahead of time in September. Ethan and the landlord eventually agreed on the final figure of £6,000 . If the lease had fallen below 80 years, the sum would have gone up by a minimum £1,150.
Last May we were phoned by Dr Isobel Lefèvre , who was assigned a lease of a first floor flat in Pyle in September 2002. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical premises in Pyle with 100 year plus lease were valued around £210,600. The mid-range ground rent payable was £45 billed monthly. The lease lapsed on 17 July 2088. Given that there were 62 years unexpired we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus legals.
Last Spring we were approach by Ms F Khan , who owned a purpose-built apartment in Pyle in April 2003. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable premises in Pyle with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease terminated in 2099. Taking into account 73 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.