It’s an underpublicised certainty that a Bakewell residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Bakewell property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining drops below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Bakewell will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases 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 lawyer throughout the process.
Leasehold residencies in Bakewell with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bakewell can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her garden apartment in Bakewell, Danielle commenced the lease extension process just as the lease was nearing the crucial 80-year threshold. The transaction was finalised in August 2006. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. B Phillips purchased a garden apartment in Bakewell in November 1995. The question was if we could estimate the price would be to extend the lease by 90 years. Comparable flats in Bakewell with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 collected yearly. The lease came to a finish in 2093. Taking into account 67 years remaining we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including expenses.
Last year we were contacted by Dr Jason Garcia , who took over the lease of a first floor apartment in Bakewell in September 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable flats in Bakewell with a long lease were in the region of £206,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded in 2082. Taking into account 56 years outstanding we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus costs.