The value of Biddenham 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 escalate substantially once the remaining term is below than eighty years
Leasehold premises in Biddenham with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Biddenham can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Biddenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold proprietor of a high value flat in Biddenham being sold with a lease of a little over 61 years left. Jake informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jake to exercise his statutory right. Jake obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Dr Toby Taylor bought a ground floor flat in Biddenham in September 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Biddenham with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease lapsed in 2104. Considering the 79 years remaining we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.
In 2011 we were e-mailed by Ms Gemma Leroy who, having owned a one bedroom apartment in Biddenham in November 2003. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable flats in Biddenham with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease came to a finish in 2084. Having 59 years left we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of fees.