Unfortunately that a Pocklington residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Pocklington property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Pocklington will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Pocklington,the lease extension experts 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 Pocklington valuers.
Elijah owned a 2 bedroom apartment in Pocklington being marketed with a lease of just over sixty years remaining. Elijah on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Elijah to invoke his statutory right. Elijah procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last Spring we were called by Ms P Morgan , who took over the lease of a one bedroom apartment in Pocklington in July 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Pocklington with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 billed quarterly. The lease termination date was in 2097. Taking into account 71 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Dr J Morgan was assigned a lease of a one bedroom flat in Pocklington in July 1995. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical homes in Pocklington with an extended lease were in the region of £225,800. The average amount of ground rent was £60 collected per annum. The lease finished on 19 May 2086. Taking into account 60 years unexpired we estimated the premium to the landlord for the lease extension to be between £25,700 and £29,600 plus fees.