It’s a harsh certainty that a Bacup residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Bacup property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. The majority of flat owners in Bacup will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Bacup with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Bacup valuers.
Last Summer Connor, started to get close to the eighty-year mark with the lease on his basement apartment in Bacup. In buying his property 18 years ago, the length of the lease was of minimal bearing. As luck would have it, he noticed he needed to take action soon on a lease extension. Connor extended the lease just under the wire last August. Connor and the landlord in the end agreed on an amount of £5,000 . If the lease had gone below eighty years, the sum would have increased by a minimum £1,125.
Mr and Mrs. D Norbert owned a basement apartment in Bacup in October 2001. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative flats in Bacup with an extended lease were worth £176,200. The average ground rent payable was £65 invoiced annually. The lease finished in 2081. Having 56 years remaining we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 plus costs.
Last Spring we were approach by Mr Theo Cox , who completed a first floor apartment in Bacup in May 1995. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Bacup with 100 year plus lease were worth £242,600. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish in 2092. Taking into account 67 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of legals.