It’s a harsh truth that a Biggleswade residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Biggleswade property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be due. Most flat owners in Biggleswade will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Biggleswade with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Biggleswade can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Biggleswade lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the freeholder of her ground floor apartment in Biggleswade, Imogen started the lease extension process just as the lease was approaching the critical 80-year deadline. The transaction was finalised in August 2014. The landlord’s charges were negotiated to a tad over 500 GBP.
In 2010 we were contacted by Mr and Mrs. O Jones who, having completed a ground floor flat in Biggleswade in June 2009. We are asked if we could estimate the premium would be to extend the lease by 90 years. Identical homes in Biggleswade with a long lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated in 2079. Having 53 years left we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including costs.
Last April we were phoned by Mr and Mrs. J Ward , who purchased a first floor apartment in Biggleswade in October 1999. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Comparative homes in Biggleswade with an extended lease were valued around £225,400. The average amount of ground rent was £45 invoiced quarterly. The lease elapsed in 2090. Given that there were 64 years remaining we approximated the premium to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of fees.