With a residential leasehold property in Bessacarr, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about 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 particularly once there are fewer than eighty years remaining. Leasehold owners in Bessacarr with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has under 80 years remaining, under the current legislation the freeholder can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Bessacarr with in excess of one hundred years left 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Bessacarr can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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.
Liam was the the leasehold proprietor of a high value flat in Bessacarr on the market with a lease of a few days over sixty years left. Liam informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Liam to invoke his statutory right. Liam procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last Winter we were called by Dr C Thomas , who bought a studio flat in Bessacarr in October 2007. We are asked if we could estimate the premium could be to extend the lease by 90 years. Similar homes in Bessacarr with an extended lease were valued about £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease terminated on 21 April 2102. Having 76 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
Mr and Mrs. G Mercier completed a studio apartment in Bessacarr in May 2003. The question was if we could estimate the premium could be to prolong the lease by 90 years. Similar residencies in Bessacarr with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease elapsed on 14 August 2091. Given that there were 65 years remaining we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including fees.