The market value of a leasehold property in Biggleswade depends on how long the lease has left to run. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years to run so that formalities can be concluded ahead of the eighty year threshold. Leasehold Reform legislation enables Biggleswade qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Biggleswade leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Tommy, came perilously close to the eighty-year threshold with the lease on his garden apartment in Biggleswade. Having bought his property two decades ago, the length of the lease was of minimal importance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Tommy extended the lease just under the wire last April. Tommy and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If the lease had gone lower than 80 years, the figure would have escalated by at least £1,125.
Dr J Norbert bought a recently refurbished flat in Biggleswade in January 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Biggleswade with an extended lease were valued about £183,600. The average ground rent payable was £65 invoiced quarterly. The lease concluded in 2083. Taking into account 57 years remaining we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.
In 2014 we were contacted by Mrs Leah Jackson who, having took over the lease of a garden apartment in Biggleswade in April 2004. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Similar residencies in Biggleswade with 100 year plus lease were worth £245,000. The average amount of ground rent was £50 invoiced per annum. The lease came to a finish on 6 September 2094. Having 68 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.