As the the remaining lease term of a Bacup residential lease diminished so does its value and therefore the value of your property. If the lease has, in excess of 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner as opposed to later. Many flat owners in Bacup will meet the qualifying criteria; that being said a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Bacup,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bacup valuers.
Trailing protracted correspondence with the freeholder of her ground floor flat in Bacup, Laura started the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension completed in April 2013. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were approach by Mr and Mrs. E Carter , who owned a purpose-built apartment in Bacup in April 2008. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable homes in Bacup with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 collected annually. The lease came to a finish in 2096. Given that there were 71 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2014 we were called by Mr and Mrs. W García who, having moved into a basement flat in Bacup in October 2009. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative premises in Bacup with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed monthly. The lease elapsed on 3 March 2076. Having 51 years left we estimated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus costs.