The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Bedfont can extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Bedfont lease extension. Putting off the costs today simply increases the price you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Engaging our service gives you enhanced control over the value of your Bedfont leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Kian, came dangerously close to the 80-year mark with the lease on his ground floor apartment in Bedfont. In buying his property 18 years previously, the length of the lease was of minimal bearing. by good luck, he realised he needed to take steps soon on Extending the lease. Kian was able to extend his lease just under the wire in September. Kian and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had fallen to less than eighty years, the premium would have increased by at least £925.
Mr Lewis Bell completed a one bedroom flat in Bedfont in March 2000. We are asked if we could estimate the price could be to prolong the lease by ninety years. Similar properties in Bedfont with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended on 6 November 2094. Considering the 68 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
An example of a Lease Extension case for a Bedfont residence is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The remaining number of years on the lease was 82.93 years.