Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Bessacarr. Inevitably, the length of lease left reduces over time. This is often overlooked and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Bessacarr have the right to extend the lease for an additional ninety years under statute. You should give careful consideration before putting off your Bessacarr lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Bessacarr leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the freeholder of her leasehold apartment in Bessacarr, Georgina initiated the lease extension process just as the lease was nearing the crucial 80-year threshold. The legal work completed in November 2012. The freeholder’s costs were kept to an absolute minimum.
Last month we were contacted by Dr Emily Turner , who bought a garden flat in Bessacarr in July 2005. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Bessacarr with a long lease were worth £250,400. The average ground rent payable was £65 invoiced annually. The lease lapsed on 13 January 2089. Taking into account 64 years left we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus expenses.
Last January we were e-mailed by Mr and Mrs. V Anderson , who completed a one bedroom flat in Bessacarr in October 2005. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Bessacarr with an extended lease were worth £189,000. The mid-range ground rent payable was £55 collected every twelve months. The lease expired in 2078. Taking into account 53 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.