When it comes to residential leasehold premises in Bedmond, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Anyone in Bedmond with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has less than 80 years remaining, under the current Act the landlord can calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Bedmond with in excess of 100 years left on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Bedmond,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bedmond valuers.
Jonathan was the the leasehold owner of a high value apartment in Bedmond being sold with a lease of fraction over fifty eight years outstanding. Jonathan informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
Mr and Mrs. U Moreau acquired a one bedroom flat in Bedmond in October 1998. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Bedmond with an extended lease were valued around £250,400. The mid-range ground rent payable was £65 collected annually. The lease finished in 2090. Having 64 years outstanding we estimated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.
In 2012 we were approached by Ms G Morel who, having owned a one bedroom flat in Bedmond in June 2002. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar premises in Bedmond with 100 year plus lease were in the region of £189,000. The mid-range ground rent payable was £55 billed annually. The lease end date was in 2079. Having 53 years left we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.