The only way is down when it comes to Bideford lease terms. Bideford properties that have a lease term less than than 80 years will de-escalate in value even faster, and the cost to extend your lease will increase.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Bideford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bideford valuers.
Off the back of protracted negotiations with the freeholder of her garden flat in Bideford, Charlotte commenced the lease extension process just as the lease was coming close to the crucial 80-year mark. The lease extension completed in March 2006. The freeholder’s costs were kept to an absolute minimum.
Last year we were contacted by Dr Edward Vincent , who moved into a one bedroom flat in Bideford in October 1996. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative premises in Bideford with 100 year plus lease were worth £240,600. The mid-range ground rent payable was £65 billed quarterly. The lease concluded on 21 June 2087. Having 62 years remaining we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.
Last Spring we were called by Dr C Fournier , who completed a one bedroom apartment in Bideford in May 2010. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical flats in Bideford with an extended lease were worth £174,200. The average amount of ground rent was £55 collected per annum. The lease lapsed on 1 April 2076. Considering the 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.