The only way is down when it comes to Pocklington lease terms. Pocklington leaseholds that have a lease term shorter than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will go up.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to 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. |
| 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; |
| 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. |
| Chelsea Building Society | 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. |
The conveyancers that we work with undertake 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 conveyancer we work with provide it.
Jude was the the leasehold proprietor of a 2 bedroom apartment in Pocklington being sold with a lease of fraction over fifty eight years outstanding. Jude on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree 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 payable on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. R Bonnet completed a purpose-built flat in Pocklington in April 1999. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Identical residencies in Pocklington with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out on 28 September 2105. Given that there were 79 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 exclusive of professional charges.
Last August we were e-mailed by Mr and Mrs. B Rivera , who owned a studio apartment in Pocklington in October 2006. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Identical flats in Pocklington with 100 year plus lease were valued around £275,000. The average ground rent payable was £65 collected annually. The lease lapsed on 27 September 2094. Given that there were 68 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.