Bodmin leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of 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 Bodmin will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Bodmin,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bodmin valuers.
Nathaniel owned a 2 bedroom flat in Bodmin being marketed with a lease of just over 72 years left. Nathaniel informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. U Morgan completed a ground floor apartment in Bodmin in September 2012. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar properties in Bodmin with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 invoiced annually. The lease ended in 2097. Given that there were 72 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
In 2014 we were approached by Mr and Mrs. F Bell who, having was assigned a lease of a basement flat in Bodmin in May 2011. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in Bodmin with 100 year plus lease were valued around £233,200. The mid-range amount of ground rent was £60 collected annually. The lease came to a finish on 24 February 2086. Considering the 61 years left we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of expenses.