With a residential leasehold property in Petts Wood, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years left. Residents in Petts Wood with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has under 80 years remaining, under the relevant statute the landlord is entitled to calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Petts Wood with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| National Westminster Bank | 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. |
Retaining our service will provide you enhanced control over the value of your Petts Wood leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Ryan, came critically near to the eighty-year mark with the lease on his purpose- built apartment in Petts Wood. In buying his flat two decades ago, the unexpired term was of little concern. by good luck, it dawned on him that he needed to take action soon on a lease extension. Ryan extended the lease just under the wire in June. Ryan and the freeholder via the managing agents eventually agreed on a premium of £5,500 . If he had missed the deadline, the amount would have increased by at least £1,025.
In 2011 we were called by Mr E Stewart who, having purchased a purpose-built apartment in Petts Wood in May 2006. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar premises in Petts Wood with a long lease were in the region of £300,000. The average amount of ground rent was £50 invoiced yearly. The lease termination date was on 8 September 2101. Having 76 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
An example of a Lease Extension matter before the tribunal 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 unexpired residue of the current lease was 50.57 years.