The value of Pyle leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than 80 years
Leasehold premises in Pyle with over one hundred 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 circumstances there is often little to be gained by buying the reversionary interest 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Pyle leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Theo owned a 2 bedroom flat in Pyle on the market with a lease of fraction over fifty eight years unexpired. Theo on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2010 we were approached by Mr and Mrs. J Dupont who, having completed a studio flat in Pyle in February 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Identical flats in Pyle with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 collected annually. The lease concluded on 15 October 2084. Considering the 59 years left we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of fees.
Last year we were contacted by Mrs W Miller , who took over the lease of a garden apartment in Pyle in March 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Pyle with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed per annum. The lease ended in 2095. Having 70 years unexpired we estimated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 exclusive of fees.