Bideford leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Bideford will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Bideford leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ryan was the the leasehold owner of a 2 bedroom flat in Bideford being sold with a lease of fraction over 61 years left. Ryan informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Ms N Turner acquired a ground floor apartment in Bideford in November 1995. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable residencies in Bideford with a long lease were valued around £198,800. The mid-range ground rent payable was £55 invoiced every twelve months. The lease termination date was in 2079. Considering the 55 years unexpired we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.
Dr Noah Collins moved into a ground floor apartment in Bideford in February 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Bideford with a long lease were valued about £300,000. The mid-range ground rent payable was £50 billed annually. The lease expiry date was in 2099. Given that there were 75 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.