Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Bakewell. Clearly, the length of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Bakewell have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful deliberation before delaying your Bakewell lease extension. Holding off the cost now only increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Bakewell with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Bakewell can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Bakewell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Gabriel owned a 2 bedroom apartment in Bakewell on the market with a lease of a few days over 59 years outstanding. Gabriel on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2014 we were called by Mr and Mrs. O Parker who, having took over the lease of a first floor flat in Bakewell in February 2011. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparable homes in Bakewell with an extended lease were valued around £166,800. The average ground rent payable was £50 billed per annum. The lease lapsed in 2076. Having 50 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including costs.
Mr and Mrs. H Peterson moved into a purpose-built flat in Bakewell in May 2001. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative properties in Bakewell with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 billed quarterly. The lease terminated on 24 February 2096. Having 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.