When it comes to domestic leasehold property in Petts Wood, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Residents in Petts Wood with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has less than 80 years outstanding, under the relevant legislation the landlord can calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Petts Wood with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Petts Wood leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago George, came very close to the eighty-year mark with the lease on his two bedroom apartment in Petts Wood. In buying his property 19 years ago, the length of the lease was of little concern. by good luck, he recognised he would soon be paying an escalated premium for a lease extension. George arranged for a lease extension just in the nick of time last September. George and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If the lease had slipped below 80 years, the price would have increased by a minimum £1,125.
In 2013 we were contacted by Mr and Mrs. B Allen who, having purchased a basement apartment in Petts Wood in April 2009. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar flats in Petts Wood with a long lease were worth £181,600. The mid-range amount of ground rent was £55 billed every twelve months. The lease terminated on 10 April 2077. Having 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including fees.
An example of a Lease Extension decision 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 remaining number of years on the lease was 50.57 years.