The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bawtry may extend the lease for an additional ninety years in accordance with legislation. Please think carefully before delaying your Bawtry lease extension. Postponing the costs now simply escalates the amount you will eventually have to pay for a lease extension.
Leasehold properties in Bawtry with more than one hundred years outstanding 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Bawtry,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bawtry valuers.
Twenty four months ago Archie, came perilously near to the eighty-year mark with the lease on his studio flat in Bawtry. In buying his home two decades ago, the unexpired term was of no significance. by good luck, he became aware that he would imminently be paying way over the odds for Extending the lease. Archie extended the lease at the eleventh hour last April. Archie and the landlord in the end settled on an amount of £6,000 . If he had missed the deadline, the price would have escalated by at least £875.
Last Autumn we were called by Dr Hunter Vincent , who moved into a basement flat in Bawtry in February 1998. The question was if we could approximate the premium could be for a 90 year lease extension. Similar flats in Bawtry with a long lease were worth £280,000. The average ground rent payable was £45 billed quarterly. The lease ended on 3 August 2096. Given that there were 70 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
In 2010 we were approached by Dr P Morris who, having moved into a newly refurbished flat in Bawtry in June 2003. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative residencies in Bawtry with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 collected quarterly. The lease finished in 2085. Given that there were 59 years left we calculated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 plus professional charges.