Bedale leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Bedale will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers that we work with undertake Bedale lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing lengthy negotiations with the freeholder of her garden flat in Bedale, Lydia started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work was finalised in April 2006. The freeholder’s costs were restricted to less than five hundred pounds.
In 2011 we were phoned by Mr and Mrs. V Collins who, having moved into a studio flat in Bedale in July 2008. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Bedale with a long lease were in the region of £285,000. The average ground rent payable was £45 collected annually. The lease end date was on 8 September 2097. Considering the 71 years remaining we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.
Mr and Mrs. M Edwards took over the lease of a purpose-built flat in Bedale in June 2000. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar premises in Bedale with an extended lease were in the region of £225,800. The average amount of ground rent was £60 invoiced annually. The lease ended in 2086. Taking into account 60 years unexpired we approximated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 not including costs.