Bamber Bridge leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty 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 the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Bamber Bridge will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain situations you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with undertake Bamber Bridge 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.
Trailing protracted discussions with the landlord of her garden apartment in Bamber Bridge, Isabelle initiated the lease extension process as the 80 year threshold was rapidly approaching. The lease extension was finalised in July 2015. The landlord’s fees were negotiated to below 600 GBP.
Ms E Turner owned a first floor flat in Bamber Bridge in August 2001. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Bamber Bridge with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 collected yearly. The lease came to a finish in 2105. Having 79 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.
In 2014 we were called by Mr and Mrs. M White who, having took over the lease of a one bedroom flat in Bamber Bridge in February 2004. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable properties in Bamber Bridge with 100 year plus lease were worth £275,000. The average ground rent payable was £65 invoiced per annum. The lease ended on 26 January 2094. Taking into account 68 years remaining we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.