With a long leasehold property in Bedford, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Residents in Bedford with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under 80 years left, under the relevant statute the landlord is entitled to calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Bedford with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Bedford 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.
After unsuccessful discussions with the landlord of her one bedroom apartment in Bedford, Isabelle initiated the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction completed in June 2012. The landlord’s charges were negotiated to slightly above 500 pounds.
In 2011 we were approached by Mr and Mrs. F Roberts who, having was assigned a lease of a purpose-built apartment in Bedford in April 2003. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Bedford with a long lease were in the region of £173,800. The mid-range amount of ground rent was £60 collected per annum. The lease finished on 3 April 2078. Considering the 55 years unexpired we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus legals.
Dr Luca Cox bought a one bedroom apartment in Bedford in May 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Bedford with a long lease were worth £235,200. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated in 2089. Given that there were 66 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.