Bilborough leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bilborough will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Bilborough 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
The lawyers that we work with procure Bilborough 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 conveyancing solicitor we work with provide it.
Jamie was the the leasehold proprietor of a conversion apartment in Bilborough on the market with a lease of a few days over fifty eight years unexpired. Jamie on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jamie to invoke his statutory right. Jamie procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Dr M King was assigned a lease of a first floor flat in Bilborough in July 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Bilborough with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 collected yearly. The lease lapsed in 2100. Taking into account 75 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Last Winter we were contacted by Dr Morgan Wilson , who moved into a basement apartment in Bilborough in June 2005. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Similar properties in Bilborough with an extended lease were valued about £250,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ran out on 22 June 2089. Having 64 years remaining we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including professional charges.