Bamburgh leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Bamburgh will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Bamburgh with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Bamburgh 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of protracted discussions with the landlord of her garden flat in Bamburgh, Kate initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work was finalised in September 2012. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were called by Mr and Mrs. B Turner , who owned a one bedroom flat in Bamburgh in July 1995. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Bamburgh with an extended lease were valued around £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed in 2076. Taking into account 51 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of expenses.
Last Spring we were e-mailed by Ms Anna Baker , who acquired a recently refurbished apartment in Bamburgh in March 2008. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical residencies in Bamburgh with an extended lease were valued about £210,600. The mid-range ground rent payable was £45 invoiced monthly. The lease concluded in 2087. Having 62 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including expenses.