Bessacarr residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold residencies in Bessacarr with in excess of 100 years outstanding 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The conveyancing solicitors that we work with handle Bessacarr 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 lawyer we work with provide it.
Last October Blake, started to get close to the eighty-year threshold with the lease on his leasehold flat in Bessacarr. In buying his property 18 years previously, the lease term was of no importance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Blake arranged for a lease extension at the eleventh hour in May. Blake and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If the lease had fallen below 80 years, the figure would have escalated by at least £1,025.
Dr U Davies moved into a basement apartment in Bessacarr in March 1996. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Bessacarr with an extended lease were in the region of £223,400. The average amount of ground rent was £60 invoiced yearly. The lease concluded in 2084. Having 59 years left we approximated the premium to the landlord to extend the lease to be within £27,600 and £31,800 plus professional charges.
Last Summer we were e-mailed by Dr Laura Lee , who took over the lease of a one bedroom apartment in Bessacarr in August 2011. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable properties in Bessacarr with a long lease were in the region of £205,000. The average amount of ground rent was £50 invoiced per annum. The lease expired on 15 November 2104. Having 79 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.