With a domestic leasehold premises in Bembridge, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Leasehold owners in Bembridge with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below eighty years remaining, under the relevant Act the freeholder can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
The lawyers that we work with handle Bembridge 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.
Following unsuccessful correspondence with the freeholder of her garden apartment in Bembridge, Niamh initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction completed in August 2008. The freeholder’s charges were kept to an absolute minimum.
Last month we were phoned by Ms F Campbell , who purchased a purpose-built apartment in Bembridge in October 1997. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Comparative flats in Bembridge with a long lease were worth £206,200. The average amount of ground rent was £60 collected yearly. The lease concluded on 14 October 2082. Having 56 years as a residual term we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus costs.
Ms J Watson took over the lease of a one bedroom flat in Bembridge in March 2001. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical properties in Bembridge with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected yearly. The lease finished on 6 April 2102. Considering the 76 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.