The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bawtry can extend the lease for a further ninety years under statute. Do give careful consideration before delaying your Bawtry lease extension. Postponing the costs today simply escalates the premium you will ultimately be required to pay for a lease extension.
Leasehold properties in Bawtry with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Bawtry can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bawtry lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Kyle, came dangerously close to the 80-year mark with the lease on his ground floor apartment in Bawtry. In buying his home twenty years previously, the length of the lease was of little importance. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. Kyle arranged for a lease extension at the eleventh hour in August. Kyle and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If the lease had dropped to less than eighty years, the premium would have increased by at least £1,125.
In 2013 we were called by Dr Finn Fournier who, having moved into a studio flat in Bawtry in January 1995. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Bawtry with a long lease were worth £174,200. The mid-range ground rent payable was £55 collected monthly. The lease came to a finish on 26 January 2076. Having 51 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
In 2014 we were phoned by Ms D Hill who, having completed a garden flat in Bawtry in August 1998. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Bawtry with 100 year plus lease were worth £285,000. The average ground rent payable was £45 billed monthly. The lease ended on 9 March 2096. Considering the 71 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.