When it comes to long leasehold property in Bardsley, you are actually purchasing a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years remaining. Residents in Bardsley with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has under 80 years outstanding, under the current Act the freeholder is entitled to calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Bardsley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her two bedroom apartment in Bardsley, Rebecca commenced the lease extension process just as her lease was approaching the critical 80-year threshold. The legal work was finalised in January 2015. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were contacted by Mr Caleb Thompson who, having completed a one bedroom apartment in Bardsley in January 2011. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative residencies in Bardsley with a long lease were in the region of £290,000. The average ground rent payable was £45 billed quarterly. The lease came to a finish in 2097. Given that there were 72 years unexpired we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of legals.
Last Winter we were contacted by Dr D Rivera , who moved into a first floor apartment in Bardsley in March 2004. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Bardsley with a long lease were worth £233,200. The mid-range ground rent payable was £60 collected per annum. The lease concluded on 22 February 2086. Taking into account 61 years outstanding we approximated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including fees.