Pyle leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Pyle enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Pyle you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Pyle leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Pyle leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Oliver, came very close to the eighty-year threshold with the lease on his two bedroom apartment in Pyle. In buying his property 18 years previously, the lease term was of minimal relevance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Oliver arranged for a lease extension just in the nick of time in August. Oliver and the freeholder subsequently settled on sum of £5,000 . If he failed to meet the deadline, the premium would have become more costly by a minimum £900.
Mr and Mrs. L Bailey was assigned a lease of a purpose-built flat in Pyle in March 2008. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable premises in Pyle with 100 year plus lease were worth £208,200. The mid-range ground rent payable was £65 billed annually. The lease concluded on 22 October 2087. Taking into account 61 years remaining we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of legals.
Last Christmas we were contacted by Mrs Anna Richardson , who purchased a studio flat in Pyle in January 1997. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Identical residencies in Pyle with an extended lease were in the region of £260,000. The average ground rent payable was £50 invoiced yearly. The lease expired on 3 March 2098. Having 72 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.