Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Pocklington. Inevitably, the length of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Pocklington have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give due deliberation before putting off your Pocklington lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Pocklington with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Pocklington can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Pocklington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful negotiations with the landlord of her leasehold apartment in Pocklington, Stephanie started the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in March 2007. The freeholder’s costs were negotiated to approximately six hundred pounds.
In 2012 we were contacted by Mr and Mrs. C Patel who, having completed a one bedroom apartment in Pocklington in July 1995. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative flats in Pocklington with an extended lease were worth £280,000. The average amount of ground rent was £45 collected yearly. The lease expired on 6 March 2096. Having 70 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.
Dr Chelsea Brown acquired a studio flat in Pocklington in February 2006. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable premises in Pocklington with 100 year plus lease were worth £218,400. The mid-range ground rent payable was £60 invoiced monthly. The lease expired on 26 April 2085. Taking into account 59 years unexpired we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of legals.