Bacup residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Bacup with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| The Mortgage Works |
The conveyancers that we work with undertake Bacup 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 lawyer we work with provide it.
Off the back of protracted correspondence with the freeholder of her leasehold flat in Bacup, Amelia started the lease extension process as the eighty year deadline was fast nearing. The lease extension was finalised in February 2006. The landlord’s charges were kept to an absolute minimum.
Mrs Chloe Brown bought a garden apartment in Bacup in May 1998. The question was if we could estimate the price could be for a 90 year lease extension. Comparative flats in Bacup with a long lease were valued around £264,000. The average amount of ground rent was £60 collected yearly. The lease terminated in 2079. Given that there were 53 years remaining we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including legals.
In 2013 we were phoned by Mr Kai Jackson who, having owned a garden apartment in Bacup in May 2011. 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 an additional years. Similar residencies in Bacup with 100 year plus lease were in the region of £225,400. The average ground rent payable was £45 collected annually. The lease elapsed in 2090. Taking into account 64 years outstanding we estimated the premium to the landlord for the lease extension to be within £16,200 and £18,600 not including expenses.