Bakewell leases on residential deteriorating in value. if your lease has about ninety years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bakewell will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The lawyers 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 conveyancer we work with provide it.
Seth was the the leasehold proprietor of a studio flat in Bakewell being marketed with a lease of just over 61 years remaining. Seth on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Seth to exercise his statutory right. Seth procured expert legal guidance and secured satisfactory deal informally and sell the property.
Mr and Mrs. I Edwards moved into a studio apartment in Bakewell in January 2000. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable flats in Bakewell with a long lease were in the region of £208,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired in 2082. Taking into account 57 years left we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including expenses.
In 2011 we were contacted by Mr Noah Evans who, having moved into a purpose-built apartment in Bakewell in July 2006. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Bakewell with 100 year plus lease were valued around £200,000. The average amount of ground rent was £50 invoiced annually. The lease lapsed in 2102. Considering the 77 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.