Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Pentonville. Inevitably, the period of lease left shortens over time. This is often overlooked and only raises itself as an issue when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Pentonville have the legal entitlement to extend the lease for an additional 90 years under statute. Please give due deliberation before delaying your Pentonville lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
Lender | Requirement |
---|---|
Accord Mortgages | 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. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
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. |
Using our service gives you increased control over the value of your Pentonville leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Jude, came dangerously close to the eighty-year mark with the lease on his one bedroom apartment in Pentonville. In buying his property two decades ago, the lease term was of little concern. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Jude was able to extend his lease just in the nick of time last August. Jude and the freeholder via the managing agents subsequently agreed on sum of £5,000 . If the lease had gone to less than 80 years, the sum would have increased by a minimum £975.
Mr and Mrs. G Sánchez owned a first floor flat in Pentonville in October 2009. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparative flats in Pentonville with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected annually. The lease termination date was in 2092. Considering the 68 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
An example of a Lease Extension case for a Pentonville premises is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case affected 1 flat. The unexpired residue of the current lease was 66.8 years.