Petts Wood Lease Extension - Free Consultation

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Main reasons to commence your Petts Wood lease extension


Main reasons to start your Petts Wood lease extension today:

Increase your lease and increase your Petts Wood property value

Unfortunately that a Petts Wood residential lease is a wasting asset. As the lease term reduces 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 Petts Wood property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Petts Wood will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.

Petts Wood property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lending institutions will not grant a mortgage on a short lease

Lending institutions are less likely to issue a loan offer on a domestic property in Petts Wood with a short lease. Many lenders simply refuse a mortgage on leases with under 75 years left.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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.
Leeds Building Society 85 years remaining from the start of the mortgage.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary

Get in touch with one of our Petts Wood lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Petts Wood,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Petts Wood valuers.

Petts Wood Lease Extension Case Studies:

Chloe, Petts Wood, Kent,

Trailing unsuccessful correspondence with the landlord of her garden apartment in Petts Wood, Chloe started the lease extension process as the eighty year deadline was rapidly advancing. The legal work completed in May 2009. The landlord’s charges were kept to an absolute minimum.

Petts Wood case:

In 2013 we were phoned by Mr and Mrs. S Morel who, having took over the lease of a ground floor apartment in Petts Wood in November 2008. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative premises in Petts Wood with 100 year plus lease were worth £243,000. The mid-range ground rent payable was £65 collected every twelve months. The lease finished on 10 November 2088. Taking into account 63 years remaining we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus professional charges.

Decision in Bromley

An example of a Lease Extension case for a Petts Wood residence is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case was in relation to 1 flat. The unexpired term as at the valuation date was 50.57 years.