The value of Bodmin leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service gives you increased control over the value of your Bodmin leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the freeholder of her basement flat in Bodmin, Sophia initiated the lease extension process as the eighty year threshold was rapidly advancing. The transaction completed in April 2005. The landlord’s costs were negotiated to approximately 450 pounds.
Last July we were called by Dr N Clark , who moved into a purpose-built apartment in Bodmin in July 2006. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Identical properties in Bodmin with a long lease were in the region of £250,400. The average amount of ground rent was £65 billed per annum. The lease ended in 2088. Having 64 years left we estimated the premium to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of legals.
Ms N Roux took over the lease of a one bedroom apartment in Bodmin in March 1997. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative residencies in Bodmin with 100 year plus lease were in the region of £184,000. The mid-range amount of ground rent was £55 collected annually. The lease finished on 14 June 2077. Taking into account 53 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.