Bamburgh leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Bamburgh residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bamburgh you would be well advised to check if your lease has between 70 and ninety years left. There are good reasons why a Bamburgh leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 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 | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle 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.
Two years ago Jasper, came critically near to the eighty-year mark with the lease on his studio flat in Bamburgh. Having purchased his flat two decades ago, the unexpired term was of little relevance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Jasper extended the lease at the eleventh hour last June. Jasper and the freeholder eventually settled on a premium of £6,000 . If the lease had descended below 80 years, the premium would have increased by a minimum £950.
In 2013 we were approached by Mr and Mrs. Y White who, having took over the lease of a studio apartment in Bamburgh in November 2002. The question was if we could approximate the premium could be to prolong the lease by 90 years. Comparative homes in Bamburgh with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 billed quarterly. The lease ended in 2086. Considering the 60 years unexpired we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus legals.
In 2012 we were phoned by Mr and Mrs. A Turner who, having completed a studio apartment in Bamburgh in January 2005. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar residencies in Bamburgh with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease expired in 2097. Having 71 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.