It’s an underpublicised certainty that a Bamber Bridge residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Bamber Bridge property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Bamber Bridge will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Santander |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Theo owned a high value apartment in Bamber Bridge on the market with a lease of a few days over fifty eight years outstanding. Theo informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last month we were phoned by Mr Riley Allen , who was assigned a lease of a recently refurbished flat in Bamber Bridge in March 2007. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar homes in Bamber Bridge with an extended lease were valued about £184,000. The average amount of ground rent was £55 invoiced quarterly. The lease lapsed on 24 November 2079. Given that there were 53 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
Mr B Nelson purchased a first floor flat in Bamber Bridge in September 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar flats in Bamber Bridge with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 invoiced monthly. The lease came to a finish in 2099. Considering the 73 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.