On the balance of probabilities where you own a flat in Bamber Bridge you actually own a long leasehold interest over your property
Leasehold properties in Bamber Bridge with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Bamber Bridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted discussions with the freeholder of her one bedroom flat in Bamber Bridge, Tia initiated the lease extension process as the eighty year deadline was rapidly advancing. The legal work completed in April 2007. The landlord’s charges were restricted to less than 500 GBP.
Mr O Reed purchased a one bedroom flat in Bamber Bridge in March 2012. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparative premises in Bamber Bridge with 100 year plus lease were worth £200,000. The average ground rent payable was £50 billed quarterly. The lease concluded on 10 April 2103. Given that there were 77 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
In 2013 we were contacted by Dr A Garcia who, having acquired a recently refurbished apartment in Bamber Bridge in January 2012. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Similar premises in Bamber Bridge with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ended in 2092. Having 66 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 not including professional charges.