On the balance of probabilities if you own a flat in Bardsley you actually own a long leasehold interest over your property
Leasehold premises in Bardsley with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Engaging our service gives you enhanced control over the value of your Bardsley leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Stanley was the the leasehold proprietor of a high value flat in Bardsley on the market with a lease of just over fifty eight years left. Stanley on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Stanley to invoke his statutory right. Stanley procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Last Christmas we were e-mailed by Dr P Jackson , who acquired a one bedroom apartment in Bardsley in October 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Bardsley with an extended lease were valued about £225,800. The mid-range amount of ground rent was £60 billed annually. The lease expired in 2085. Given that there were 60 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of costs.
Last month we were contacted by Mr and Mrs. K Cooper , who owned a studio apartment in Bardsley in May 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable flats in Bardsley with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease termination date was in 2105. Having 80 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.