The only way is down when it comes to Biggleswade lease terms. Biggleswade flats that have a lease term less than than eighty years will drop in value even faster, and the cost of extending your lease will go up.
Leasehold properties in Biggleswade with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Biggleswade lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 6 months of lengthy discussions with the freeholder of her first floor flat in Biggleswade, Jodie commenced the lease extension process as the 80 year threshold was fast approaching. The legal work was finalised in June 2011. The landlord’s costs were restricted to under 700 GBP.
Last Christmas we were contacted by Mr W Howard , who owned a garden apartment in Biggleswade in April 2008. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative homes in Biggleswade with an extended lease were valued about £245,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ran out on 19 September 2094. Given that there were 68 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Last Summer we were e-mailed by Mr and Mrs. K Thomas , who bought a basement flat in Biggleswade in August 1996. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparable residencies in Biggleswade with an extended lease were worth £285,000. The average amount of ground rent was £55 collected per annum. The lease terminated on 23 July 2105. Taking into account 79 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.