The market value of Bebington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is below than eighty years
Leasehold residencies in Bebington with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | 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. |
Irrespective of whether you are a tenant or a landlord in Bebington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bebington valuers.
Owen was the the leasehold owner of a conversion flat in Bebington on the market with a lease of a few days over 72 years remaining. Owen informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Owen to invoke his statutory right. Owen procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
In 2014 we were e-mailed by Dr F Kelly who, having owned a ground floor apartment in Bebington in October 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Bebington with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £65 billed monthly. The lease lapsed in 2088. Taking into account 62 years as a residual term we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including fees.
In 2010 we were approached by Mr and Mrs. E Rose who, having owned a one bedroom flat in Bebington in April 1999. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative homes in Bebington with a long lease were in the region of £174,200. The average amount of ground rent was £55 collected annually. The lease concluded on 25 February 2077. Considering the 51 years left we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.