The re-sale value of a leasehold property in Bakewell is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded ahead of the eighty year threshold. Leasehold Reform legislation entitles Bakewell qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Bakewell with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Skipton Building Society |
The conveyancers that we work with procure Bakewell 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 lawyer we work with provide it.
In 2014 Stanley, started to get near to the eighty-year mark with the lease on his studio apartment in Bakewell. Having bought his home 18 years previously, the lease term was of minimal concern. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Stanley was able to extend his lease just ahead of time in March. Stanley and the freeholder via the managing agents subsequently agreed on sum of £5,000 . If the lease had slid below eighty years, the sum would have become more exhorbitant by at least £1,125.
In 2014 we were contacted by Ms Daisy Brooks who, having completed a ground floor flat in Bakewell in May 2008. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Similar homes in Bakewell with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 collected per annum. The lease ended on 15 March 2100. Having 74 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Mr Owen Jackson purchased a purpose-built flat in Bakewell in August 1997. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Similar homes in Bakewell with a long lease were valued about £243,000. The average ground rent payable was £65 collected quarterly. The lease concluded on 6 August 2089. Considering the 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus costs.