Padstow leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher premium will be due. Leasehold owners in Padstow will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 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 property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Padstow leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Felix, started to get close to the 80-year threshold with the lease on his first floor flat in Padstow. Having bought his flat twenty years ago, the length of the lease was of minimal importance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Felix arranged for a lease extension just in the nick of time in March. Felix and the landlord ultimately agreed on sum of £5,500 . If he not met the deadline, the price would have become more exhorbitant by a minimum £1,150.
In 2010 we were phoned by Mrs Stephanie Campbell who, having acquired a first floor flat in Padstow in March 1998. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Similar premises in Padstow with an extended lease were in the region of £181,600. The average amount of ground rent was £55 invoiced quarterly. The lease expired in 2078. Having 52 years left we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
In 2012 we were called by Mrs Caitlin Lefèvre who, having bought a one bedroom flat in Padstow in November 2006. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparable homes in Padstow with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 billed annually. The lease elapsed on 11 March 2098. Given that there were 72 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including legals.