Pocklington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Pocklington residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Pocklington you would be well advised to check if your lease has between 70 and 90 years remaining. There are good reasons why a Pocklington leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Pocklington with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Pocklington leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Matthew, started to get near to the eighty-year mark with the lease on his ground floor flat in Pocklington. Having bought his flat 19 years previously, the length of the lease was of little bearing. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. Matthew was able to extend his lease just under the wire last May. Matthew and the landlord eventually agreed on the final figure of £6,000 . If the lease had slipped to less than 80 years, the price would have become more exhorbitant by a minimum £875.
Last March we were e-mailed by Dr F Richardson , who bought a studio flat in Pocklington in August 2008. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Pocklington with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 collected annually. The lease lapsed in 2086. Considering the 61 years outstanding we estimated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 not including costs.
Last Christmas we were contacted by Dr K Jackson , who took over the lease of a recently refurbished flat in Pocklington in January 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Pocklington with 100 year plus lease were valued around £166,800. The average ground rent payable was £50 invoiced per annum. The lease ended on 24 March 2075. Considering the 50 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of fees.