The only way is down when it comes to Bewdley lease terms. Bewdley flats that have a remaining term lower than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will rise.
Leasehold premises in Bewdley with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Bewdley 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.
Twenty four months ago Daniel, started to get near to the 80-year threshold with the lease on his one bedroom flat in Bewdley. Having purchased his property 18 years previously, the lease term was of no significance. Fortunately, he recognised he would soon be paying an escalated premium for a lease extension. Daniel extended the lease just under the wire in September. Daniel and the freeholder subsequently settled on sum of £5,500 . If he not met the deadline, the sum would have become more costly by at least £975.
In 2011 we were called by Mrs Chantelle Morgan who, having took over the lease of a recently refurbished apartment in Bewdley in February 2008. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparable homes in Bewdley with a long lease were worth £191,000. The average ground rent payable was £65 invoiced every twelve months. The lease ended in 2083. Taking into account 58 years remaining we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 plus legals.
Last month we were contacted by Mr and Mrs. J Ricardo , who took over the lease of a one bedroom flat in Bewdley in November 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Bewdley with a long lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced annually. The lease came to a finish on 4 September 2094. Having 69 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.