As the length of the unexpired term of a Bedmond domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, over 100 years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years left 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 sooner than later. Many flat owners in Bedmond will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Lease extensions in Bedmond can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 in-depth market knowledge dealing with Bedmond lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the freeholder of her basement flat in Bedmond, Amber initiated the lease extension process as the 80 year threshold was swiftly advancing. The lease extension was finalised in February 2012. The freeholder’s charges were negotiated to about 500 GBP.
In 2012 we were called by Dr Laura Howard who, having moved into a studio flat in Bedmond in August 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical flats in Bedmond with 100 year plus lease were worth £240,600. The average ground rent payable was £65 billed quarterly. The lease came to a finish on 11 January 2088. Having 62 years left we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including professional charges.
Mrs Millie Michel moved into a basement flat in Bedmond in July 2010. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative properties in Bedmond with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed monthly. The lease end date was on 28 October 2077. Having 51 years unexpired we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.