It’s an underpublicised truth that a Biggleswade residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Biggleswade property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Biggleswade will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Biggleswade with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Biggleswade can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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.
Following protracted discussions with the freeholder of her leasehold flat in Biggleswade, Daisy initiated the lease extension process as the 80 year mark was rapidly approaching. The lease extension completed in February 2010. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were called by Mrs G Young who, having took over the lease of a garden flat in Biggleswade in February 2000. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Comparable properties in Biggleswade with an extended lease were worth £218,000. The average ground rent payable was £45 billed per annum. The lease expired in 2088. Taking into account 63 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus professional charges.
Last year we were phoned by Mrs V Cox , who purchased a one bedroom flat in Biggleswade in August 2005. The dilemma was if we could estimate the price could be to prolong the lease by a further 90 years. Similar properties in Biggleswade with an extended lease were worth £265,000. The average amount of ground rent was £55 billed annually. The lease terminated in 2099. Having 74 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.