The only way is down when it comes to Bardsley lease terms. Bardsley leaseholds that have a lease term lower than eighty years will drop in market price even faster, and the cost to extend your lease will rise.
Leasehold residencies in Bardsley with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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 handle Bardsley 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 conveyancing solicitor we work with provide it.
Trailing lengthy discussions with the freeholder of her first floor apartment in Bardsley, Harriet initiated the lease extension process as the eighty year deadline was quickly approaching. The transaction was finalised in March 2009. The landlord’s fees were restricted to approximately 500 GBP.
Last month we were e-mailed by Dr R Alexander , who completed a one bedroom apartment in Bardsley in November 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Bardsley with a long lease were in the region of £216,000. The average ground rent payable was £60 collected per annum. The lease terminated on 5 July 2083. Having 58 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
In 2011 we were e-mailed by Dr N Petit who, having bought a studio flat in Bardsley in June 1996. We are asked if we could estimate the price would be to extend the lease by ninety years. Similar properties in Bardsley with an extended lease were in the region of £205,000. The average ground rent payable was £50 billed annually. The lease terminated in 2103. Given that there were 78 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.