With a residential leasehold premises in Bawtry, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Leasehold owners in Bawtry with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has below 80 years outstanding, under the relevant Act the freeholder can calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Bawtry,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bawtry valuers.
Following protracted negotiations with the freeholder of her one bedroom apartment in Bawtry, Naomi started the lease extension process as the eighty year threshold was fast nearing. The legal work was finalised in April 2006. The freeholder’s fees were negotiated to slightly above 500 pounds.
Mrs Alicia Cook purchased a purpose-built flat in Bawtry in March 1998. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical homes in Bawtry with a long lease were valued about £210,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish on 16 September 2106. Having 80 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
In 2013 we were called by Mr and Mrs. V Parker who, having moved into a garden apartment in Bawtry in March 2006. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Identical premises in Bawtry with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £45 billed annually. The lease expired in 2095. Taking into account 69 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.