There is no doubt about it a leasehold property in Bedmond is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. The majority of flat owners in Bedmond will meet the qualifying criteria; that being said a lawyer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Bedmond with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bedmond can be a difficult process. We recommend you get guidance from a lawyer 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 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.
Two years ago Harvey, started to get near to the 80-year threshold with the lease on his garden apartment in Bedmond. In buying his property 18 years ago, the unexpired term was of minimal interest. Thankfully, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Harvey arranged for a lease extension just in the nick of time in August. Harvey and the landlord in the end settled on an amount of £6,000 . If the lease had slid to less than eighty years, the premium would have gone up by at least £1,150.
In 2009 we were approached by Mrs V Gómez who, having owned a basement flat in Bedmond in January 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable flats in Bedmond with an extended lease were valued about £300,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated in 2102. Having 76 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
In 2014 we were contacted by Mr A Moreau who, having moved into a one bedroom flat in Bedmond in June 2000. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Bedmond with 100 year plus lease were valued around £257,800. The mid-range amount of ground rent was £65 billed annually. The lease lapsed in 2091. Taking into account 65 years remaining we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus costs.