Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Padstow. Inevitably, the term of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Padstow have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Padstow lease extension. Putting off that expense now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Padstow with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 Padstow can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
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 Padstow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Alexander, started to get near to the eighty-year mark with the lease on his first floor flat in Padstow. Having purchased his property 18 years previously, the lease term was of no concern. Luckily, he became aware that he needed to take action soon on Extending the lease. Alexander was able to extend his lease at the eleventh hour in September. Alexander and the landlord who owned the flat above eventually settled on an amount of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £1,075.
In 2010 we were contacted by Mrs T Khan who, having acquired a purpose-built apartment in Padstow in April 2004. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparable residencies in Padstow with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced annually. The lease concluded on 17 August 2092. Taking into account 67 years outstanding we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including costs.
Dr Riley Roberts completed a ground floor flat in Padstow in August 2002. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar properties in Padstow with a long lease were in the region of £206,200. The average ground rent payable was £60 collected every twelve months. The lease lapsed in 2081. Taking into account 56 years outstanding we calculated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of legals.