As the length of the unexpired term of a Bebington domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Bebington will qualify for this right; that being said a lawyer will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 in-depth market knowledge and the close ties they enjoy with Bebington valuers.
In the wake of 9 months of lengthy negotiations with the freeholder of her purpose-built apartment in Bebington, Phoebe started the lease extension process as the eighty year threshold was swiftly approaching. The legal work completed in July 2014. The landlord’s costs were restricted to about 550 GBP.
Mr and Mrs. K Thomas took over the lease of a purpose-built apartment in Bebington in July 2007. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable flats in Bebington with 100 year plus lease were worth £189,000. The average ground rent payable was £55 invoiced per annum. The lease ran out in 2078. Given that there were 53 years remaining we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.
Mrs Chloe Mercier owned a purpose-built apartment in Bebington in September 1999. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Bebington with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed in 2098. Taking into account 73 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.