With a domestic leasehold property in Bebington, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Anyone in Bebington with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has fewer than 80 years left, under the current statute the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bebington can be a difficult process. We recommend you procure guidance 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 Bebington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jamie, started to get near to the eighty-year mark with the lease on his garden apartment in Bebington. In buying his property two decades ago, the length of the lease was of no bearing. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Jamie extended the lease just under the wire last June. Jamie and the freeholder in the end agreed on sum of £5,000 . If he had missed the deadline, the premium would have become more costly by at least £1,100.
Last Autumn we were called by Ms Sophie Morel , who was assigned a lease of a studio flat in Bebington in April 2004. The question was if we could approximate the price would be to prolong the lease by an additional years. Similar homes in Bebington with an extended lease were in the region of £290,000. The average ground rent payable was £45 billed monthly. The lease end date was in 2097. Having 72 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including costs.
In 2010 we were phoned by Dr Grace Wilson who, having purchased a one bedroom apartment in Bebington in June 2001. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable flats in Bebington with an extended lease were in the region of £233,200. The average amount of ground rent was £60 invoiced annually. The lease terminated on 21 March 2086. Considering the 61 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of fees.