With a residential leasehold property in South Petherton, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are fewer than 80 years remaining. Residents in South Petherton with a lease approaching 81 years unexpired should seriously consider extending it without delay. When the lease term has fewer than 80 years left, under the current Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in South Petherton with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in South Petherton can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 in-depth market knowledge dealing with South Petherton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the landlord of her studio apartment in South Petherton, Rebecca commenced the lease extension process as the 80 year threshold was rapidly nearing. The lease extension completed in January 2010. The landlord’s charges were kept to an absolute minimum.
Dr Ellen Nguyen owned a studio apartment in South Petherton in September 2012. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in South Petherton with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 collected every twelve months. The lease expiry date was on 22 November 2088. Considering the 63 years remaining we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including fees.
In 2009 we were approached by Mrs F Robinson who, having was assigned a lease of a basement apartment in South Petherton in November 1996. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparable flats in South Petherton with a long lease were in the region of £265,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ran out on 10 September 2099. Given that there were 74 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.