With a residential leasehold premises in Bebington, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years remaining. Leasehold owners in Bebington with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has under 80 years remaining, under the current statute the landlord is entitled to calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a landlord in Bebington,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bebington valuers.
Subsequent to lengthy correspondence with the landlord of her purpose-built flat in Bebington, Rachel commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The transaction was finalised in September 2007. The freeholder’s charges were negotiated to about 700 pounds.
In 2014 we were phoned by Dr U Martinez who, having was assigned a lease of a newly refurbished apartment in Bebington in January 2001. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparable flats in Bebington with an extended lease were worth £225,800. The mid-range ground rent payable was £60 collected per annum. The lease ended in 2085. Having 60 years remaining we approximated the premium to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of expenses.
Last Christmas we were phoned by Mr and Mrs. J Morel , who was assigned a lease of a first floor flat in Bebington in May 2004. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical properties in Bebington with an extended lease were worth £210,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 7 July 2105. Considering the 80 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.