The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Pocklington can extend the lease for a further 90 years under statute. Please give careful consideration before delaying your Pocklington lease extension. Shelving that expense now simply increases the price you will eventually be required to pay to extend the lease.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you better control over the value of your Pocklington leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dylan was the the leasehold owner of a 2 bedroom apartment in Pocklington on the market with a lease of just over fifty eight years left. Dylan informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2014 we were approached by Mr and Mrs. R Richardson who, having bought a studio apartment in Pocklington in September 2008. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar premises in Pocklington with a long lease were valued around £295,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed on 25 April 2101. Given that there were 75 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2009 we were phoned by Mr and Mrs. D Gray who, having completed a one bedroom flat in Pocklington in July 2000. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar homes in Pocklington with an extended lease were valued around £250,400. The average amount of ground rent was £65 billed monthly. The lease terminated on 17 January 2090. Having 64 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of costs.