The only way is down when it comes to Bamburgh lease terms. Bamburgh flats that have a remaining term lower than eighty years will de-escalate in value even faster, and the cost to extend your lease will go up.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
After protracted correspondence with the freeholder of her studio apartment in Bamburgh, Erin commenced the lease extension process as the 80 year deadline was swiftly nearing. The legal work completed in May 2015. The landlord’s charges were kept to an absolute minimum.
Last Winter we were approach by Dr Seth Gunderson , who took over the lease of a one bedroom flat in Bamburgh in October 2006. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical flats in Bamburgh with an extended lease were valued around £285,000. The average amount of ground rent was £55 billed every twelve months. The lease terminated on 7 March 2104. Taking into account 79 years unexpired we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.
Last Autumn we were approach by Mr and Mrs. G Howard , who owned a studio flat in Bamburgh in March 2010. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Similar flats in Bamburgh with 100 year plus lease were valued around £193,400. The average amount of ground rent was £65 invoiced annually. The lease terminated on 14 June 2084. Having 59 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus legals.