There is no doubt about it a leasehold property in Bedford Hill is a wasting asset as a result of the shortening lease. If the residual term has, beyond 125 years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Bedford Hill will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Bedford Hill can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bedford Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Jack, came very near to the eighty-year mark with the lease on his two bedroom apartment in Bedford Hill. Having bought his flat twenty years previously, the length of the lease was of little relevance. by good luck, he became aware that he needed to take action soon on Extending the lease. Jack extended the lease just under the wire in May. Jack and the freeholder via the managing agents subsequently agreed on sum of £5,500 . If the lease had fallen below eighty years, the premium would have increased by at least £1,075.
Last month we were e-mailed by Dr D Gray , who moved into a recently refurbished apartment in Bedford Hill in August 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable flats in Bedford Hill with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease termination date was on 9 July 2078. Taking into account 53 years remaining we approximated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 plus expenses.
An example of a Lease Extension matter before the tribunal for a Bedford Hill property 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 affected 1 flat. The number of years remaining on the existing lease(s) was 56.67 years.