The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Pocklington may extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Pocklington lease extension. Postponing the costs now simply increases the price you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Pocklington 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 conveyancing solicitor we work with provide it.
Following lengthy negotiations with the landlord of her first floor apartment in Pocklington, Natasha started the lease extension process just as the lease was nearing the all-important eighty-year deadline. The legal work was concluded in November 2005. The freeholder’s costs were negotiated to a tad over 650 pounds.
In 2013 we were e-mailed by Ms Rosie Murphy who, having was assigned a lease of a garden flat in Pocklington in June 2012. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable premises in Pocklington with a long lease were valued about £260,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease terminated in 2092. Given that there were 66 years outstanding we calculated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of expenses.
Last year we were phoned by Ms Emily Rivera , who owned a studio apartment in Pocklington in April 2001. The question was if we could approximate the premium would be for a 90 year extension to my lease. Similar properties in Pocklington with a long lease were worth £198,800. The mid-range amount of ground rent was £55 collected quarterly. The lease expired in 2081. Given that there were 55 years left we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.