When it comes to domestic leasehold premises in Pinner, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems 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 eighty years remaining. Anyone in Pinner with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has less than eighty years remaining, under the relevant legislation the freeholder can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Pinner with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Pinner lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Finn owned a studio flat in Pinner being sold with a lease of a little over sixty years unexpired. Finn on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finn to invoke his statutory right. Finn obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2009 we were approached by Mrs Niamh Anderson who, having acquired a basement apartment in Pinner in March 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Pinner with an extended lease were valued around £285,000. The average ground rent payable was £55 invoiced annually. The lease lapsed on 6 August 2105. Given that there were 80 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
An example of a Lease Extension decision for a Pinner flat is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case was in relation to 3 flats. The unexpired term was 71 years.