The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Petts Wood have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Please give careful consideration before delaying your Petts Wood lease extension. Putting off that expense today simply escalates the premium you will eventually have to pay for a lease extension.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you enhanced control over the value of your Petts Wood 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 wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Lucas, came critically near to the 80-year mark with the lease on his two bedroom apartment in Petts Wood. In buying his home two decades ago, the length of the lease was of minimal concern. Fortunately, he noticed he needed to take steps soon on a lease extension. Lucas arranged for a lease extension just ahead of time in July. Lucas and the landlord who owned the flat above eventually settled on a premium of £6,000 . If he not met the deadline, the amount would have escalated by at least £950.
Mr and Mrs. O Nguyen owned a ground floor flat in Petts Wood in June 2006. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable properties in Petts Wood with 100 year plus lease were valued about £260,200. The mid-range amount of ground rent was £65 billed annually. The lease ended in 2092. Having 66 years unexpired we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 plus expenses.
An example of a Lease Extension matter before the tribunal for a Petts Wood premises 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 affected 1 flat. The unexpired term as at the valuation date was 50.57 years.