Bamburgh leases on domestic deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% 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 Bamburgh will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Bamburgh with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Bamburgh leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her studio flat in Bamburgh, Emma started the lease extension process as the eighty year deadline was rapidly approaching. The transaction was concluded in March 2005. The landlord’s fees were kept to an absolute minimum.
In 2009 we were phoned by Mr and Mrs. C White who, having moved into a garden apartment in Bamburgh in September 2003. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Bamburgh with an extended lease were in the region of £227,800. The average amount of ground rent was £45 billed quarterly. The lease elapsed in 2091. Taking into account 65 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
Mrs S Lambert bought a first floor flat in Bamburgh in April 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Bamburgh with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected annually. The lease ended on 25 February 2102. Considering the 76 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.