Bestwood leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bestwood will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Bestwood with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
Retaining our service gives you increased control over the value of your Bestwood leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Aarav, started to get close to the 80-year mark with the lease on his purpose- built flat in Bestwood. Having purchased his property two decades ago, the unexpired term was of little concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Aarav was able to extend his lease just in the nick of time last July. Aarav and the freeholder in the end agreed on an amount of £6,000 . If he failed to meet the deadline, the sum would have increased by at least £850.
Mr and Mrs. N Rivera moved into a basement flat in Bestwood in March 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical premises in Bestwood with 100 year plus lease were worth £203,200. The average ground rent payable was £65 collected every twelve months. The lease ran out on 15 May 2087. Considering the 61 years left we approximated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus expenses.
Last Autumn we were e-mailed by Mr and Mrs. B Williams , who owned a first floor flat in Bestwood in April 2010. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparative premises in Bestwood with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated on 18 February 2098. Having 72 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.