The only way is down when it comes to Bacup lease terms. Bacup properties that have a lease term shorter than eighty years will drop in value at a rapid rate, and the cost to extend your lease will rise.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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.
Last Winter Adam, started to get near to the 80-year mark with the lease on his two bedroom apartment in Bacup. In buying his flat 19 years previously, the lease term was of little bearing. by good luck, he recognised he needed to take steps soon on a lease extension. Adam arranged for a lease extension at the eleventh hour in April. Adam and the landlord ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the price would have increased by a minimum £1,000.
Dr P Petit bought a basement flat in Bacup in June 1995. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparative premises in Bacup with 100 year plus lease were worth £218,000. The average amount of ground rent was £45 billed quarterly. The lease expiry date was in 2088. Given that there were 63 years outstanding we estimated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including legals.
Mr and Mrs. P Rose purchased a newly refurbished flat in Bacup in October 1999. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Bacup with 100 year plus lease were worth £265,000. The average ground rent payable was £55 invoiced monthly. The lease came to a finish in 2099. Given that there were 74 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.