Bessacarr leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Bessacarr will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Bessacarr with more than one hundred years left on the lease are sometimes referred to as ‘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 upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Bessacarr can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 Bessacarr lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Dexter, came dangerously near to the eighty-year mark with the lease on his ground floor flat in Bessacarr. In buying his home two decades ago, the lease term was of little relevance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Dexter extended the lease just in the nick of time last May. Dexter and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If he not met the deadline, the price would have increased by at least £1,050.
Last Christmas we were approach by Ms W Taylor , who moved into a purpose-built flat in Bessacarr in November 2009. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Bessacarr with an extended lease were in the region of £295,000. The average ground rent payable was £45 collected annually. The lease concluded on 14 March 2101. Having 75 years remaining we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
Last year we were called by Mr and Mrs. L Murphy , who completed a first floor apartment in Bessacarr in February 2010. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Bessacarr with an extended lease were worth £250,400. The mid-range ground rent payable was £65 collected annually. The lease expiry date was on 26 November 2090. Taking into account 64 years remaining we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including professional charges.