It’s an underpublicised truth that a Biggleswade residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early 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 considering 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 amount will be payable. Most leasehold owners in Biggleswade will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Biggleswade with in excess of 100 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Biggleswade,the lease extension lawyers 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 Dylan, came very close to the 80-year threshold with the lease on his ground floor flat in Biggleswade. Having purchased his home 19 years previously, the length of the lease was of no concern. Thankfully, he realised he would imminently be paying an inflated amount for a lease extension. Dylan was able to extend his lease at the eleventh hour in August. Dylan and the freeholder eventually agreed on an amount of £5,000 . If the lease had dipped to less than 80 years, the figure would have increased by a minimum £1,100.
Last Christmas we were called by Dr R Hernández , who purchased a purpose-built apartment in Biggleswade in January 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Biggleswade with a long lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out on 11 August 2087. Considering the 61 years left we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of costs.
Mr and Mrs. V Martínez purchased a one bedroom flat in Biggleswade in March 2010. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable residencies in Biggleswade with a long lease were worth £260,000. The average ground rent payable was £50 invoiced yearly. The lease termination date was on 17 August 2098. Having 72 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.