The market value of a leasehold property in Bamber Bridge is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed prior to the 80 year mark. Current legislation enables Bamber Bridge qualifying lessees to a 90 year extension added to their unexpired 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 arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Bamber Bridge with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the landlord of her ground floor apartment in Bamber Bridge, Victoria commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The legal work completed in April 2005. The freeholder’s costs were negotiated to under six hundred GBP.
In 2011 we were approached by Mr and Mrs. S Phillips who, having acquired a garden flat in Bamber Bridge in June 2006. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Bamber Bridge with a long lease were in the region of £295,000. The mid-range ground rent payable was £50 billed yearly. The lease ended on 24 February 2101. Having 75 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Mr and Mrs. B Ramírez bought a one bedroom apartment in Bamber Bridge in August 1999. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Bamber Bridge with 100 year plus lease were valued around £250,400. The average amount of ground rent was £65 invoiced quarterly. The lease lapsed in 2090. Considering the 64 years remaining we approximated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus fees.