As the the remaining lease term of a Pocklington domestic lease decreases so does its value and therefore the value of your property. If the lease has, more than 99 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Pocklington will qualify for this right; that being said a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Pocklington with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle 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.
Off the back of lengthy discussions with the freeholder of her first floor apartment in Pocklington, Katherine initiated the lease extension process as the 80 year deadline was fast approaching. The lease extension was concluded in March 2011. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were e-mailed by Mr S Garcia who, having purchased a garden apartment in Pocklington in July 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Pocklington with 100 year plus lease were worth £189,000. The average amount of ground rent was £55 invoiced annually. The lease concluded in 2077. Having 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
In 2010 we were contacted by Ms M Reed who, having was assigned a lease of a studio flat in Pocklington in January 2000. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative homes in Pocklington with a long lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease expired on 22 June 2097. Taking into account 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.