Chances are that where you own a flat in Biggleswade you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Biggleswade,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Biggleswade valuers.
In 2014 Noah, came precariously near to the 80-year mark with the lease on his leasehold flat in Biggleswade. In buying his property two decades ago, the lease term was of minimal interest. Luckily, he became aware that he needed to take steps soon on Extending the lease. Noah was able to extend his lease at the eleventh hour last June. Noah and the landlord eventually agreed on an amount of £6,000 . If the lease had dropped below eighty years, the premium would have gone up by a minimum £1,025.
Last Autumn we were called by Dr Kai François , who bought a one bedroom flat in Biggleswade in June 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Similar flats in Biggleswade with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 collected every twelve months. The lease finished on 14 July 2091. Taking into account 66 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.
Last Autumn we were e-mailed by Mr and Mrs. J Michel , who completed a basement apartment in Biggleswade in January 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Identical homes in Biggleswade with a long lease were in the region of £275,000. The average ground rent payable was £55 collected per annum. The lease concluded on 16 May 2102. Given that there were 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.