Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Bacup. Inevitably, the length of lease left shortens over time. This is often ignored and only raises itself as an issue when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Bacup have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give due attention before delaying your Bacup lease extension. Holding off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold properties in Bacup with more than one hundred years unexpired 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Bacup,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bacup valuers.
Half a year ago Leon, started to get near to the 80-year threshold with the lease on his purpose- built flat in Bacup. In buying his flat two decades ago, the length of the lease was of no significance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Leon arranged for a lease extension just under the wire last July. Leon and the freeholder via the managing agents subsequently settled on the final figure of £5,000 . If the lease had slipped below eighty years, the sum would have increased by at least £1,050.
Mrs U Mitchell completed a purpose-built apartment in Bacup in November 1995. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Identical properties in Bacup with an extended lease were worth £285,000. The mid-range ground rent payable was £55 billed yearly. The lease expired in 2106. Taking into account 80 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
In 2011 we were e-mailed by Mrs T Martin who, having owned a newly refurbished flat in Bacup in May 2006. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Bacup with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease ran out on 26 June 2086. Considering the 60 years remaining we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including expenses.