Bedlington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Bedlington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bedlington you must check if your lease has between seventy and ninety years remaining. There are good reasons why a Bedlington leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | 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. |
Using our service gives you better control over the value of your Bedlington leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted discussions with the freeholder of her basement apartment in Bedlington, Katherine started the lease extension process just as her lease was nearing the all-important 80-year threshold. The transaction was concluded in January 2012. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were approached by Mr Luca Wilson who, having moved into a one bedroom apartment in Bedlington in May 2010. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparative homes in Bedlington with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced yearly. The lease came to a finish on 6 August 2076. Given that there were 50 years remaining we approximated the premium to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of expenses.
In 2010 we were approached by Mr and Mrs. T González who, having was assigned a lease of a basement flat in Bedlington in April 2008. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical homes in Bedlington with a long lease were in the region of £203,200. The mid-range ground rent payable was £65 billed annually. The lease finished on 1 October 2087. Taking into account 61 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus professional charges.