Bacup leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Bacup will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Jayden was the the leasehold owner of a 2 bedroom flat in Bacup on the market with a lease of a little over 59 years unexpired. Jayden informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Last Summer we were phoned by Mrs Hollie Martin , who purchased a first floor apartment in Bacup in March 1999. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative flats in Bacup with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 collected per annum. The lease concluded on 21 June 2104. Given that there were 78 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.
In 2012 we were contacted by Mrs Grace Mercier who, having was assigned a lease of a first floor flat in Bacup in June 1996. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable flats in Bacup with 100 year plus lease were valued around £191,000. The mid-range ground rent payable was £65 invoiced annually. The lease came to a finish in 2084. Taking into account 58 years unexpired we approximated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including fees.