Pyle leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Pyle tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Pyle you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Pyle with more than 100 years unexpired 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
Mason was the the leasehold owner of a high value flat in Pyle on the market with a lease of a few days over 59 years left. Mason informally approached his landlord 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 rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Mason to exercise his statutory right. Mason procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2009 we were contacted by Mr A David who, having completed a one bedroom flat in Pyle in September 2001. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparable flats in Pyle with a long lease were valued about £173,800. The average ground rent payable was £60 collected every twelve months. The lease expired in 2080. Considering the 55 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.
Mr E Ali purchased a purpose-built flat in Pyle in June 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Pyle with a long lease were worth £235,200. The mid-range ground rent payable was £45 invoiced annually. The lease finished on 17 July 2091. Given that there were 66 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.