Bedford Hill leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Bedford Hill tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Bedford Hill you would be well advised to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Bedford Hill with in excess of 100 years outstanding on the lease are often regarded as a ‘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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Bedford Hill,the lease extension solicitors 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 Bedford Hill valuers.
Following protracted discussions with the landlord of her studio flat in Bedford Hill, Lydia commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work was finalised in April 2013. The landlord’s charges were restricted to below six hundred GBP.
In 2009 we were called by Mr Matthew Cox who, having took over the lease of a one bedroom flat in Bedford Hill in May 1999. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar premises in Bedford Hill with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 collected every twelve months. The lease termination date was on 9 July 2096. Considering the 70 years unexpired we calculated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 plus costs.
An example of a Lease Extension matter before the tribunal for a Bedford Hill flat is First Floor Flat 152a Ramsden Road in June 2009. The net result of the tribunals calculation produced a premium payable of £23,975. This case was in relation to 1 flat. The remaining number of years on the lease was 56.67 years.