It’s a harsh truth that a Pyle residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Pyle property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Pyle will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Lease extensions in Pyle can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Pyle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jamie owned a 2 bedroom flat in Pyle on the market with a lease of a few days over fifty eight years remaining. Jamie on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. E Patel who, having moved into a studio apartment in Pyle in November 2011. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable properties in Pyle with an extended lease were valued about £254,200. The average ground rent payable was £60 collected every twelve months. The lease ended in 2076. Taking into account 51 years remaining we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of expenses.
Mr and Mrs. E Howard completed a recently refurbished flat in Pyle in August 2012. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative premises in Pyle with a long lease were in the region of £210,600. The average amount of ground rent was £45 billed yearly. The lease lapsed in 2087. Having 62 years unexpired we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus professional charges.