The market value of Bardsley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is below than eighty years
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Bardsley can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Bardsley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Gabriel, came perilously near to the 80-year threshold with the lease on his garden flat in Bardsley. In buying his flat 18 years previously, the unexpired term was of minimal significance. As luck would have it, he noticed he needed to take action soon on a lease extension. Gabriel was able to extend his lease just under the wire in June. Gabriel and the landlord eventually agreed on a premium of £6,000 . If he had missed the deadline, the price would have increased by a minimum £1,050.
Last Autumn we were e-mailed by Ms Olivia Bonnet , who bought a studio apartment in Bardsley in June 2001. The question was if we could estimate the premium would be to prolong the lease by an additional years. Identical premises in Bardsley with an extended lease were worth £290,000. The mid-range ground rent payable was £45 collected yearly. The lease terminated on 21 November 2098. Having 73 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Last Summer we were called by Mr and Mrs. U Torres , who owned a purpose-built flat in Bardsley in October 2011. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar residencies in Bardsley with an extended lease were worth £240,600. The average amount of ground rent was £60 collected yearly. The lease finished in 2087. Having 62 years unexpired we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including fees.