Petts Wood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Petts Wood tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Petts Wood you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord 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 in-depth market knowledge and the close ties they enjoy with Petts Wood valuers.
In 2014 Harvey, started to get near to the eighty-year mark with the lease on his first floor apartment in Petts Wood. In buying his property two decades ago, the lease term was of little concern. Thankfully, he recognised he needed to take steps soon on a lease extension. Harvey extended the lease just in the nick of time last March. Harvey and the freeholder eventually agreed on sum of £6,000 . If the lease had slid to less than eighty years, the amount would have escalated by a minimum £975.
Last year we were called by Mr and Mrs. C Lefèvre , who acquired a one bedroom flat in Petts Wood in February 2005. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Petts Wood with a long lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease finished in 2087. Having 62 years left we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including fees.
An example of a Lease Extension case for a Petts Wood property 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 related to 1 flat. The remaining number of years on the lease was 50.57 years.